Bitcoin is hit by a new storm as Mt. Gox, one of the largest and oldest Bitcoin exchanges, announced a temporary suspension on all withdrawal requests. It's not exactly clear whether the company is suffering from technical issues, or if Mt.Gox is having a big liquidity problem.
Almost a week ago Falkvinge wrote that the Bitoin community is furious as Mt.Gox raked up over US$38 million in unfulfilled withdrawals. When Bitcoin funds are transferred, the transaction normally happens instantly, but since about two weeks ago Mt.Gox has not processed all requested Bitoin withdrawals and many clients have not received their Bitcoins.
At press time one BTC is worth US$575 on Mt.Gox, around $90 less than one BTC on Bitstamp or BTC-e. Mt.Gox is expected to issue a new statement later today.
Tokyo – JAPAN – February 07, 2014
Dear MtGox Customers,
In our efforts to resolve the issue being encountered by various bitcoin withdrawals, it was determined that the increase in the flow of withdrawal requests has hindered our efforts on a technical level. To understand the issue thoroughly, the system needs to be in a static state.
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. All bitcoin withdrawal requests will be on pause, and the withdrawals in the system will be returned to your MtGox wallet and can be reinitiated once the issue is resolved. The trading platform will perform as usual for the needs of our customers. ??
Our team will resolve this problem as soon as possible and will provide an update on Monday, February 10, 2014 (JST).??
We deeply apologize for the inconvenience caused, and thank you for your kind support and considerations. ?
The MtGox Team