Mt.Gox chief quits Bitcoin Foundation board raising more doubts over future of exchange

Mt.Gox’s chief has departed from the board of the Bitcoin Foundation as all signs point to the beleaguered Bitcoin exchange closing its doors for good.

Related: Bitcoin exchange hit by cyber attack shuts down temporarily

Mark Karpeles, chief executive of Mt.Gox, will depart right away and it comes after the site had to shut its doors after it discovered the same transaction malleability that has been affected a number of exchanges.

“Effective immediately, Mt.Gox has submitted their resignation from the board of directors. We are grateful for their early and valuable contributions as a founding member in launching the Bitcoin Foundation. MtGox Co. Ltd. [Japan] held one of the three elected industry member seats. Further details, including election procedures, will be forthcoming,” read a statement from Jon Matonis on the Bitcoin Foundation site.

Withdrawals have still not recommenced and the BBC reports that Mt.Gox has also taken the unusual step of deleting all tweets on its Twitter account thus fuelling rumours that it will shut its doors for good.

The Tokyo-based exchange is back online even without its withdrawals being reinstated and the price of Bitcoins on the exchange dropped below $100 [£60] at the end of last week, hitting a low of $91.50 [£54.91]. The wholesale price of Bitcoins was trading at $580 [£348] at the same time, meaning that it was worth almost six times those on offer at Mt.Gox.

Mt.Gox first shut it doors on 7 February when it became a victim of transaction malleability much like Slovenia’s Bitstamp and Bulgarian site BTC-e, which both temporarily shut just days later.

Transaction malleability occurs when someone alters the cryptographic code that creates an ID for the exchange of funds before its recorded in the block chain thus allowing twice as many Bitcoins to be sent by the hacker.

Related: Bitcoin drops below $100 on struggling Mt.Gox exchange

Karpeles’ departure is the second from the foundation’s board in a month after Charles Shrem, chief executive of the Bitinstant exchange, was arrested and charged with money laundering in relation to Bitcoins.