Mt. Gox resigns from Bitcoin Foundation - WSJ

Sun Feb 23, 2014 11:18pm EST

Feb 23 (Reuters) - Mark Karpeles, chief executive of Mt. Gox, the embattled Toyko-based bitcoin exchange, resigned on Sunday from the board of the Bitcoin Foundation, the Wall Street Journal reported, citing a person familiar with the situation.

The move comes amid a string of longstanding technical issues that began last summer when Mt. Gox halted customer withdrawals in U.S. dollars, the Journal said. ()

Earlier this month, Mt. Gox, the best-known digital marketplace operator, said a halt on withdrawals would continue indefinitely after it detected "unusual activity."

Mt. Gox is one of the industry representatives on the board of the Bitcoin Foundation, which advocates for the virtual currency.

Charles Shrem, another prominent member, resigned earlier this year after being arrested in connection with an alleged drug scheme involving his bitcoin currency exchange.

Bitcoin prices have been falling fast after Mt. Gox said a "bug in the bitcoin software" could allow transaction details to be altered.

Mt. Gox and the Bitcoin Foundation were not immediately available for comment.

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