TOKYO, Feb. 24 (UPI) -- Mt. Gox CEO Mark Karpeles resigned Sunday from the board of the Bitcoin Foundation, after technical issues on Mt Gox's exchange resulted in a drop in Bitcoin values.
The Bitcoin Foundation, the organization that manages the crypto-currency, confirmed in a statement that Mt. Gox, a Japan-based bitcoin exchange, had stepped down from the board and thanked the company for its involvement in launching the group.
"We are grateful for their early and valuable contributions as a founding member in launching the Bitcoin Foundation," the statement read.
The move comes after Mt. Gox suspended all customer withdrawals earlier this month, saying that a glitch in the system could allow for outside interference. Mt. Gox has maintained that the glitch had to do with a fundamental flaw in all bitcoin transactions. However, the Bitcoin Foundation countered by saying that the fault lies with Mt. Gox's wallet device and that the service was not ready to deal with transaction malleability.
The announcement of the suspension of withdrawals sent the virtual currency's value plummeting. But after apologizing for the problem and apparently fixing the glitch, customers are still unable to make withdrawals.
This is the Foundation's second high-profile resignation after board member Charles Shrem resigned in January after being charged with money laundering in connection with his bitcoin company. Shrem has pleaded not guilty.
[WSJ] [CNET] [Bitcoin Foundation]
