Tuesday, February 11, 2014

BREAKING Second Major Exchange Follows Mt Gox In Suspending Withdrawals

ZeroHedge reports:
The reasons are numerous: JPMorgan has come out with a scathing attack - "bitcoin looks like an innovation worth limiting exposure to;" CoinDesk reports that major exchanges are under a "massive and concerted attack" by a bot system - creating a "fog of confusion" over the system; and perhaps most critically, BitStamp has followed Mt.Gox and halted withdrawals "due to inconsistent results from their bitcoin wallet" - due to the DDoS attacks...

From the JPMorgan hit piece:
 Bitcoin’s greatest appeal is the apparent cheapness of peer-to-peer fund transfers, though it is unclear how economical these transactions truly are when the virtual world interacts with the real world. As provocative as its underlying technology may be, bitcoin’s practical role may be no larger than that of an emerging markets currency subject to exchange controls.

 BitStamp has put out the following statement:(My bold)
Dear Bitstamp users

Bitstamp’s exchange software is extremely cautious concerning Bitcoin transactions. Currently it has suspended processing Bitcoin withdrawals due to inconsistent results reported by our bitcoind wallet, caused by a denial-of-service attack using transaction malleability to temporarily disrupt balance checking. As such, Bitcoin withdrawal processing will be suspended temporarily until a software fix is issued.No funds have been lost and no funds are at risk.

This is a denial-of-service attack made possible by some misunderstandings in the Bitcoin wallet implementation. These misunderstandings have simple solutions that are being implemented as we speak, and we’re confident everything will be back to normal shortly.

Withdrawals which failed on the 10th and 11th of February will be canceled and the amounts added back to the customer account balances.We will communicate any further developments regarding this issue.Thank you for your understanding!

Best regards

Bitstamp team


  1. Only downside stories...It is just sad. Bitcoin is our salvation from fiat currency and you spend all your time trying to denigrate it. I know you use the shield of "I genuinely think Bitcoin will fail". But it is beyond obvious that your relationship to Bitcoin is not rational. As is your position on IP. Come on Wenzel, suppress your ego. Take another look at Bitcoin with fresh eyes. Drop your bitterness about missing the boat. Join the good guys again Robert.

    1 honest question: Do you really believe that if Bitcoin was a bubble/mania/whatever you want to call it, that it would be able to survive all these "disasters" that have attacked it? Name me another mania that has behaved in such a manner (rise and fall and stabilize more than once in an environment of complete hatred by the mainstream), I am genuinely interested if one exists.

  2. Cue bitcoin defenders - "[Insert technical jargon here], so you see it really doesn't matter if our bitcoins are frozen in an exchange, cannot be used to purchase anything and cannot be exchanged for dollars/euro/etc"

    1. Hey Danger, you are wearing your ignorance of the Bitcoin system like a pinwheel hat.

    2. Hey Danger, what would you do if one of your favorite libertarian writers kept posting negative stories about Gold? Would that invoke a response out of you? Or are you soooo Zen that this wouldn't raise your blood pressure an iota? Bitcoin is our salvation from the FIAT empire. Wake the F*** up!

    3. If a libertarian writer had legitimate critics concerning gold, whether as a possible money, use as an anonymous currency, security concerns, etc., I would listen, and most likely vehemently disagree. I really don't understand your line of argument here

      "Bitcoin is our salvation from the FIAT empire." I literally laughed when I read that. I truly, truly hope none of you is keeping too high percentage of your wealth into bitcoin

  3. Wenzel, pls move on from this incessant posting about Bitcoin. We get it already.

    Who cheers for a startups to fail when 1 in 10,000 startups make it to past 6 years and $10M revenue?

    pls move on to other topics.

  4. Wenzel, pls keep posting new information on Bitcoin. Too many people are emotionally invested in what is at best a flawed crypto currency.