Statement at HitBTC Regarding Mt. Gox Insolvency
BLAME MTGOX, NOT BITCOIN!
The Bitcoin insolvency at MtGox was caused by the culmination of several issues at their company and is in no way connected to the Bitcoin architecture. MtGox failed to respect elementary security rules, had out-dated software and did not perform any audits. However, many other exchanges, including HitBTC continue to thrive and foster the growth of Bitcoin.
LOSSES LIMITED TO BALANCES AT MTGOX
It is important to underscore that the losses of fiat currency and Bitcoin are limited to those balances that were in MtGox’s care. The MtGox exchange can best explain how this happened (for more information http://siliconangle.com/blog/2014/02/24/coinbase-blockchain-info-and-other-high-profile-bitcoin-industry-executives-mtgox-is-insolvent/).
HitBTC CUSTOMERS ARE IN THE BEST CARE AND SOLVENCY IS OUR MIDDLE NAME
HitBTC regularly monitors its balances in crypto-currencies reserves. Our investors have provided us with enough liquidity to keep our customers safe and satisfied. We have heavily invested into hiring the best auditors and accountants to protect the balances of the people who put their faith in our exchange.
HitBTC IS NOT SUBJECT TRANSACTION MALLEABILITY
HitBTC uses a patented and accredited mechanism in closing out transactions and is not vulnerable to the ‘transactional malleability’ issue that was apparently exploited at Mt. Gox. Additionally our accountants manually verify all the financial operations of the exchange on a daily basis. Any transaction problem is treated the same day we receive a complaint and fixes undergo thorough testing before being released to production.
While we are proud of our work, we continue to actively seek more ways to protect our customers even more. These include, but are not limited to:
- Raising more capital and cooperating with insurance companies to protect our client’s deposits
- Investing into hiring the best web-security experts and mathematicians who can predict and propose mitigation plans at the level of bitcoin protocol
- Continue on improving our industry-leading compliance system
- Preparing the release of publicly available and reader-friendly financial statements on our web-site