Bitcoin Stock Falls, cites bug concerns

The price of a Bitcoin fell on Monday after a leading exchange continued to limit transactions and blamed a software bug in the system that underpins the crypto-currency.

Bitcoin was down 2.3% to $666.63 in early afternoon trading in the U.S., Eastern time, according to an index run by CoinDesk. Earlier in the day it slumped as low as $535.55.

Mt. Gox, which calls itself the world’s most established Bitcoin exchange, said it was keeping a suspension of Bitcoin withdrawals in place because of a software bug that lets people “use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur.”

“The problem we have identified is not limited to MtGox, and affects all transactions where Bitcoins are being sent to a third party,” Mt. Gox added in a statement on its website.

“Changes required for addressing this issue will be positive over the long term for the whole community,” Mt. Gox said. “As a result we took the necessary action of suspending bitcoin withdrawals until this technical issue has been resolved.”

The exchanged stressed that currency withdrawals, which exchange Bitcoins for traditional currencies such as Euros and Yen, are not affected by this issue. Bitcoin withdrawals refer to the transfer of the crypto-currency from a Mt. Gox digital wallet to an external Bitcoin address, it explained.

This article was originally posted on USA Today.  Click here to view the full article.