Topic: Confused by Transaction Malleability (Read 1044 times)

My Views on MtGox’s Bitcoin Withdraw Pause


After long-time observation on the Bitcoin exchange MtGox, I think Bitcoin withdraw pause this time is probably a thorough conspiracy.

As a grand-old Bitcoin exchange, is it possible for MtGox to ignore a flaw that had been detected in 2011? And this flaw may cause big loss to the exchange itself! Did MtGox have no cautious attention on this matter or just have no knowledge on this “transaction malleability” flaw? Don’t forget MtGox always boasts that it is the gold member of Bitcoin Foundation and has good cooperation with Bitcoin core developers.

So I have below hypothesis:

1) MtGox has deliberately made itself an in-yes, out-difficult barrier lake of fiat currency(except Japanese Yen) by the excuse that its bank account had been investigated in May 2013. Therefore, the price of Bitcoin in MtGox has high premium on other exchanges.

2) Exploiting its reputation and advantage, MtGox made those new comers and conservative guys keep having confidence in it and trade Bitcoin in it. Therefore, its premium can be maintained.

3) Mtgox arbitraged by Yen using its Japanese domestic bank account(MtGox did this arbitrage craftily that it didn’t arbitrage in a huge amount every time so that the market cannot perceive it)

4) Earning enough profit from arbitrage, MtGox suspended Bitcoin withdraw by issuing a statement of suffering from the long-been-known flaw “Transaction Malleability”. It seems that MtGox becomes a victim of this flaw… The Bitcoin withdraw pause and everybody’s knowledge of the flaw led to a huge plunge of the price.

5) When the price was going to the bottom, MtGox began to buy Bitcoin(Again, MtGox did this buying craftily that it didn’t buy in a huge amount every time so that the price wouldn’t rebound dramatically to cause suspicion from others)

That’s it. MtGox made a lot of profit. And, it also “successfully” made a gesture of supporting AML to governments(refer to non-Yen fiat money withdraw difficulty) and a gesture of attaching great importance to transaction safety to traders(refer to Bitcoin withdraw pause). What a cunning fox!

In fact, there are 2 basic doubtful points from the very beginning:

1) Since the withdraw of non-Yen fiat currency to e-wallets(OKPAY, etc.) is suspended, why the deposit from these e-wallets is still available? If MtGox indeed has some trouble in AML or illegal activities investigation, the deposit should be unavailable as well as withdraw!

2) If MtGox is innocent and clear, it should make effort in effecting non-Yen fiat currencies’ withdraw through bank wire transfer, and publish statement of the quantity of unprocessed withdraws as well as future processing schedule on homepage. But, MtGox does nothing other than giving a vague period of 4 to 6 weeks. This move is to block fiat currencies’ withdraw and make the exchange a barrier lake.

As above, I call for independent investigation on MtGox immediately!


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Ahh yes you are right :-) my mistake.

You've got it backwards. For a given transaction, there can be multiple hashes (only one of which will confirm - once confirmed, no aspect of a transaction can be changed).

always unique. But double spent possible.

I am a little confused by Transaction Malleability. For a given Tx Hash, can there be multiple Tx Index or they are always unique ?