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Japan's MtGox steps down from Bitcoin Foundation board

The boss of embattled Toyko-based bitcoin exchange MtGox, has resigned from the board of the Bitcoin Foundation, the virtual currency industry body said on its website.

TOKYO: The boss of embattled Toyko-based bitcoin exchange MtGox, has resigned from the board of the Bitcoin Foundation, the virtual currency industry body said on its website.

The move comes weeks after MtGox halted all customer withdrawals claiming there was a bug in the software that underpins the crypto-currency, causing consternation among those whose cash is caught up.

The value of the bitcoin on the Tokyo exchange has plunged in recent weeks to less than half that on other platforms after MtGox stopped processing client requests to withdraw money held at its "wallet," citing a problem with the technology.

Bitcoin is at the leading edge of the nascent digital-currency movement. It is based on an open-source computer code designed by an anonymous person or people five years ago.

Unlike fiat currencies like the dollar or the euro, the bitcoin is not backed by a central bank or a government, but depends on cryptography to control the creation and transfer of money.

MtGox, which has not responded to AFP requests for comment on the latest development, said in a statement earlier this month it had "implemented a solution" to the problems and insisted customers' assets were safe.

MtGox was one of several industry movers represented on the board of the Bitcoin Foundation, which advocates for the virtual currency.

Many investors had called for the resignation of MtGox CEO Mark Karpeles from the board, including a British-based marketing consultant who has posted an online petition calling for his removal, the Wall Street Journal said in an earlier report.

Critics say the bitcoin itself is safe and the problems lie with MtGox, which they claim cannot process a high volume of transactions.

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