Bitcoin watchers! Grab your popcorn and enjoy: As the MtGox car crash plays out in slow motion, there have been a few interesting new developments.
First off, the Japanese authorities are investigating the collapse of the Tokyo-based exchange, which used to handle the bulk of Bitcoin trades before a hack attack forced it to freeze withdrawals. U.S. law enforcement is also investigating MtGox, according to Reuters, and the FBI has reportedly pricked up its ears too.
The fraud incident instantly set up MtGox against the rest of the Bitcoin community, which was desperate to point out that the vulnerability was in MtGox’s software, not in the Bitcoin protocol per se. That point is still up for debate, as a few other exchanges — and even the murky Silk Road marketplace — have been hit by fraudsters exploiting the same “malleability issue.”
What’s less debatable is that the…
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