Gox Resigns from Bitcoin Foundation, Deletes Twitter Feed, Bitcoin Tanks

MtGox has resigned from Bitcoin Foundation. On their website’s blog, the notice reads as follows: Effective immediately, Mt. Gox has

MtGox has resigned from Bitcoin Foundation. On their website’s blog, the notice reads as follows:

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.

The resignation, while sending shockwaves throughout the crypto world and markets, does not come much as a surprise. Many in the Bitcoin community had been pressuring Karpeles to resign as his exchange continued to disappoint clients unable to withdraw their bitcoins. The foundation and MtGox had also been at odds over whether MtGox or the general Bitcoin protocol are to blame for the recent crisis. MtGox itself has not commented.

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They have also deleted everything from their Twitter feed, leading some to joke that “it’s a problem in the Twitter protocol”. But it may be a very serious sign of what’s to come, especially as talk abounds as to a possible class action lawsuit.

After seeming to have just turned the corner over the weekend, BTC on MtGox has tanked over the past 10 hours. It has wiped out all of its gains, losing as much as 59%. It is now trading at $180. It had climbed as high as $348 upon some indications of progress on the withdrawal front. Even if true, the market is more concerned about the future of the exchange and the safety of their bitcoins at this point.

Bitcoin is also reeling on BTC-e and Bitstamp, losing about 10% to $570 as part of their sell-off, albeit on a smaller scale.

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