Mt. Gox, the Oldest Bitcoin Exchange Falls

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Mt. Gox, the Oldest Bitcoin Exchange Falls
Mt. Gox, the Oldest Bitcoin Exchange Falls

Mt. Gox, the Oldest Bitcoin Exchange Falls

Though Mt. Gox has been facing a lot of problems in the last couple of months, this one seems to be the one that it cannot get out from. Now, the U.S. regulators have seized more than $5 million of the company’s money and the Bitcoin exchange has regretted that it cannot pay money to its customers. This came after customers complained about delays in getting their U.S. dollars out of the exchange.

Last year, ForexMinute reported about various instances when Mt. Gox failed to provide its services to customers due to technical glitch; however, this problem has been quite persistent with this Bitcoin exchange. Now, Mt. Gox has reported that customers won’t be able to get their money back in dollars until further notice.

Customers Will Have to Wait till Monday for any Developments

The first news came that Mt. Gox suspended Bitcoin payouts in order to fix a technical glitch in its trading platform. In a note, Mt. Gox’s website says, “In order for our team to resolve the withdrawal issue it is necessary for a temporarily pause on all withdrawal requests to obtain a clear technical view of the current processes. We apologize for the sudden short notice.”

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Also, though the company promised an update on Monday, it did not give any explanation exactly what the issue was. Nonetheless, it looks Mt. Gox is in a big trouble, particularly after complaints about its Bitcoin payout problems have grown louder.

Several customers complained that their requests for withdrawals were being held up.

Bitcoin is run by Technical Guys and not Finance Experts

When Bitcoin began its operations, Mt. Gox was the only serious exchange on the internet; however, its monopoly could not last longer as several other players have come up. The new Bitcoin exchanges are giving Mt. Gox tough competition and now it looks that it is in shambles. Also, the U.S. regulators have been giving it a lot of trouble recently regarding its various non-following of laws.

A major problem with Mt. Gox according to some observers is that whereas the technology is changing regarding Bitcoin as new customers are being added, it is not able to meet the requirements on two fronts; first, with customers’ demands and the second with the regulatory bodies. They say that Mt. Gox is being run by tech guys who are not financial experts.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com