Bitcoin Exchange Mt. Gox Says Users Can Withdraw Cash

Bitcoin exchange Mt. Gox said customers can take out cash “as normal” and it’s working to resolve technical issues that prompted it to halt withdrawals of the digital currency.

“It’s not about cash at all, only about Bitcoin,” Michael Keferl, a communications officer for Tokyo-based Mt. Gox, said in an interview today. “There is a problem in the way transactions are verified.”

Bitcoin prices fell on Feb. 7 after Mt. Gox said it stopped withdrawals because of the malfunction. The company released a statement today explaining the technical issues and saying it will resume Bitcoin withdrawals once they are addressed.

“We’re sending cash to people in Japan and around the world as normal. They can exchange coins into cash,” Keferl said in Tokyo. The Bitcoin withdrawal issue “will be fixed. It’s not like a structural problem.”

The price of Bitcoin tumbled 11 percent to $606.56 at 10:49 a.m. London time, according to the CoinDesk Bitcoin Price Index, which averages prices from exchanges including Mt. Gox.

Bitcoin was introduced in 2008 by a programmer or group of programmers under the name Satoshi Nakamoto and has since gained traction with merchants around the world. The digital money has no central issuing authority, and uses a public ledger to verify transactions while preserving users’ anonymity.

To contact the reporters on this story: Monami Yui in Tokyo at myui1@bloomberg.net; Takahiko Hyuga in Tokyo at thyuga@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net

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