Computers::Data Recovery

Collapse of exchange spells trouble for bitcoin

Collapse of exchange spells trouble for bitcoin

TOKYO (AP) — The sudden disappearance of one of the largest bitcoin exchanges only adds to the mystery and ltc electrum mistrust surrounding the virtual currency, which was just beginning to gain legitimacy beyond the technology enthusiasts and adventurous investors who created it.

Prominent bitcoin supporters said the apparent collapse of the Tokyo-based Mt.

Gox exchange was an isolated case of mismanagement that will weed out “bad actors.” But the setback raised serious questions about bitcoin’s tenuous status and even more tenuous future. At least one supporter said the blow could be fatal to bitcoin’s quest for acceptance by the public.

A coalition of virtual currency companies said Mt.

Gox went under after secretly racking up catastrophic losses. The exchange had imposed a ban on withdrawals earlier this month.

FILE - This April 3, 2013 file photo shows bitcoin tokens in Sandy, Utah.  The website of major bitcoin exchange Mt. Gox is offline Tuesday, Feb. 25, 2014, a...

FILE – This April 3, 2013 file photo shows bitcoin tokens in Sandy, Utah.

The website of major bitcoin exchange Mt. Gox is offline Tuesday, Feb. 25, 2014, amid reports it suffered a debilitating theft, a new setback for efforts to gain legitimacy for the virtual currency. (AP Photo/Rick Bowmer, File)

By Tuesday, its website returned only a blank page.

On Wednesday it displayed a notice to customers that said all transactions were closed “for the time being” to protect the site and customers. The collapse followed the resignation Sunday of CEO Mark Karpeles from the board of the Bitcoin Foundation, a group seeking wider use of the exotic currency.


Gox’s origins are rooted in fantasy instead of finance. The service originally specialized in trading colorful cards featuring mythical wizards and derives its name from a game. The initials stand for, “Magic: The Gathering Online Exchange.”

San Francisco-based electrum ltc wallet service Coinbase and Chinese exchange BTC China sought to shore up confidence in the currency by saying the Mt.

Gox’s situation was isolated and the result of abusing users’ trust. They offered no details.

“As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today,” the statement said.

Since its creation in 2009, bitcoin has become popular among tech enthusiasts, libertarians and risk-seeking investors because it allows people to make one-to-one transactions, buy goods and services and exchange money across borders without involving banks, credit card issuers or other third parties.

Criminals like bitcoin for the same reasons.

For various technical reasons, it’s hard to know just how many people worldwide own bitcoins, but the currency attracted outsize media attention and the fascination of millions as an increasing number of large retailers such as began to accept it.

Speculative investors have jumped into the bitcoin fray, too, sending the currency’s value fluctuating wildly in recent months.

In December, the value of a single bitcoin hit an all-time high of $1,200. In the aftermath of the Mt. Gox collapse Tuesday, one bitcoin stood at around $470.

Central banks across the globe have been hesitant to recognize bitcoin as a form of money, and Tuesday’s vanishing act isn’t helping.

Japanese officials appeared reluctant to react, with the Finance Ministry and Financial Services Agency both saying Wednesday a virtual currency like bitcoin was not under their jurisdiction. Tokyo police declined comment.

Chief Cabinet Secretary, Yoshihide Suga, said the financial regulators are gathering information and “if necessary, I believe they will act on this.”

Mt. Gox “reminds us of the downside of decentralized, unregulated currencies,” said Campbell Harvey, a professor at the Duke University Fuqua School of Business who specializes in financial markets and global risk management.

“There is no Federal Reserve or IMF to come to the rescue. There is no deposit insurance.”

However, Campbell said, Mt. Gox’s disappearance “doesn’t mean the end of the road” for bitcoin and other virtual currencies.

The collapse “might represent the end of the ‘wild west,’ where anyone can set up shop and deal in crypto-currencies,” he said.

But “increasingly sophisticated investors” are funding serious ventures that will “raise both quality and confidence.”

Peter Leeds, a publisher of newsletter focused on risky investments, doubts bitcoin will recover from the Mt.

Gox collapse. He expects the currency to plunge below $300.

“It’s more likely that someone getting involved in bitcoin at this point of the game is going to lose,” Leed said. “There are all sorts of problems inherent with bitcoin that are just now coming to light.”

Documents purportedly leaked from Mt.

Gox lay out the scale of the problem. An 11-page “crisis strategy draft” published on the blog of entrepreneur and bitcoin enthusiast Ryan Selkis said that 740,000 bitcoins were missing from Mt. Gox. That represents roughly 6 percent of the estimated 12 million bitcoins that have been created so far, translating into hundreds of millions of dollars’ worth of losses, although figures are fuzzy given the currency’s extreme volatility.

“At the risk of appearing hyperbolic, this could be the end of bitcoin, at least for most of the public,” the draft said.

In a post to his blog, Selkis said that the document was handed to him by a “reliable source” and that several people close to the company had confirmed the figures.

Reached by phone, he declined to comment further. The Japanese government has not announced any formal investigation.

The scandal may cost customers dearly.

At the Tokyo office building housing Mt.

Gox, bitcoin trader Kolin Burges said he had picketed outside since Feb. 14 after traveling from London in an effort to get back $320,000 he has tied up in bitcoins with Mt. Gox.

“I may have lost all of my money,” said Burgess, next to placards asking if Mt.

Gox is bankrupt. “It hasn’t shaken my trust in bitcoin, but it has shaken my trust in bitcoin exchanges.”

Mt. Gox CEO Karpeles did not immediately return several messages seeking comment. A security officer at the office building said no one from Mt.

Gox was inside. Tibbane, an Internet company that Karpeles is CEO of, still has its name listed on the building’s directory.

“I have no idea” where they are, said Burges, the trader. “I’m both annoyed and worried.”

Bitcoin’s boosters say the currency’s design makes it impossible to counterfeit and difficult to manipulate.

But it has struggled to shake off its associations with criminality, particularly its role in powering the now-defunct online drug marketplace Silk Road. Only last month, another member of the Bitcoin Foundation, Vice Chairman Charlie Shrem, was arrested at New York’s Kennedy Airport on charges of money laundering.

Authorities have been taking an increasingly hard look at bitcoin and related virtual currencies, including Electrum Litecoin wallet, Namecoin, Ripple and countless others.

Some countries, including Russia, have effectively banned the currency. In other jurisdictions, authorities are weighing whether to try to tame the marketplace through licenses or other mechanisms.

Even if Mt. Gox doesn’t drag bitcoin down with it, there’s fear that the exchange’s demise will push financial regulators to take an even more skeptical stance.

“I think this is disastrous from a (regulatory) standpoint,” Selkis said in a message posted to Twitter.

“The hammer will now come down hard.”


Satter reported from London.


Associated Press Writers Stephen Wright in Bangkok and Michael Liedtke in San Francisco also contributed to this report.

FILE - In this Feb. 12, 2014 file photo, attendees of the Inside Bitcoins conference in Berlin examine Bitcoin buttons. The website of major Bitcoin exchange...

FILE – In this Feb.

12, 2014 file photo, attendees of the Inside Bitcoins conference in Berlin examine Bitcoin buttons. The website of major Bitcoin exchange Mt. Gox is offline amid reports it suffered a debilitating theft of the virtual currency, and the URL of the Tokyo-based outfit returns a blank page on Tuesday, Feb.

25, 2014. (AP Photo/Frank Jordans, File)

Computers::Data Recovery

Electrum LTC Wallet vs. other wallets – how does…

Electrum Litecoin Wallet Review 2021

The Electrum LTC wallet is an open source, desktop-based wallet that was designed specifically for Litecoin (LTC).

Electrum Litecoin wallet is a lightweight Litecoin client with lots of similarities to its mother wallet, Electrum Bitcoin. It has the advantage of being early on the crypto scene. But does this make a difference in its features and functions?

What is Electrum LTC Wallet?

What is Electrum LTC wallet? It is an open source, desktop-based wallet that was designed specifically for Litecoin (LTC). The code for Electrum was released in 2011 and though it was initially a Bitcoin-only wallet, developers have created other versions.

Electrum LTC wallet is a lightweight Litecoin client and does not require a download of the entire chain.

According to its website, it is a community-maintained port of the Bitcoin wallet, Electrum, to Litecoin. Its design is simple yet feature-filed, making it appropriate for all levels of users, beginners and more advanced.

Wallet Compatibility

Electrum Litecoin wallet is a desktop software wallet compatible with:



Mac OS

What wallet type is Electrum Litecoin?

Lightweight client

Open source

Desktop wallet

What cryptocurrencies does the Electrum Litecoin wallet support?

Litecoin (LTC)

What fees does Electrum Litecoin wallet have?

There are no Electrum Litecoin wallet fees for setting up or using the software. However, users pay the usual network fees that go to miners for transaction confirmation.

How to open your Electrum Litecoin Wallet account

To get started, let us find out how to open Electrum Litecoin wallet:

Step 1: Go to and click “Downloads”

Step 2: Click the “OS X executable” button to initiate download

Step 3: Once the download of the .dmg file completes, run the software and follow the prompts to complete installation

Step 4: You will get the question “How do you want to connect to a server?” Select “Auto-connect” and click “Next”

Step 5: Give your wallet a name and choose where to save it then click “Next

Step 6: On the next screen which asks the type of wallet you want to create, select “Standard wallet” and then click “Next”

Step 7: On the keystore page, select “Create New Seed” and click “Next”

Step 8: You will get a 12-word mnemonic phrase which you can use to regenerate your wallet if ever it fails

Step 9: Retype your seed to confirm it and then click “Next”

Step 10: Set a password for your wallet and make sure to tick the “Encrypt wallet file” box

Step 11: Your wallet will now generate addresses and when it’s done, click “Next”

Congratulations! That is how to open a wallet on Electrum Litecoin!

How do I add cryptocurrencies to Electrum Litecoin Wallet?

Next, let’s learn how to add currency to Electrum Litecoin wallet:

Step 1: Click the “Receive” button on the top right side

Step 2: Copy the receiving address, which is your Electrum Litecoin wallet address and paste it on an exchange or in another wallet to transfer funds.

Use this process to transfer Litecoin to your wallet from any other source.

Since it is a Litecoin-only wallet, we will not go into how to transfer Bitcoin to Electrum Litecoin wallet, how to transfer Ethereum to Electrum Litecoin wallet or how to transfer Ripple to Electrum Litecoin wallet.

How to send payments on Electrum Litecoin wallet?

Now that we have some funds, here is how to send payments on Electrum Litecoin wallet:

Step 1: Click the “Send” button in the middle of your screen

Step 2: Enter your recipient’s address in the “Pay to” tab, an optional description, the amount to pay and the fee, and then click “Send”

How do I receive payments on Electrum Litecoin wallet?

To receive payments on Electrum Litecoin wallet:

Step 1: Click on the “Receive” button in your wallet

You’ll see here your crypto wallet address.

Step 2: Copy the receiving wallet address and send it to your counterparty then wait for the funds to reflect.

How safe is Electrum Litecoin Wallet?

Related image

There are a number of great Electrum LItecoin safety features that seek t protect user funds. Consider the topmost:

Optional Cold Storage

You can use Electrum Litecoin to generate as well as maintain offline wallets for cold storage of your funds. Using this option, it is now possible to sign transactions from a system that remains offline. After that, you can broadcast the transaction from a PC that does not hold your private keys.

Private Key Storage

Your private key Electrum Litecoin wallet is stored not on the operators’ servers but on the user’s hard drive. Even if the servers were to be compromised therefore, users’ private keys would not be affected. It also means that every user has the responsibility to keep their own keys and wallets secure.

Open Source Code

Electrum Litecoin wallet is based on open source code. Users can therefore view and audit the code. They can even identify bugs and bring them to developers’ attention to enhance safety. This also goes to show that the team behind it has nothing to hide and is open to public scrutiny.

Being open source also means that anyone can run the client and the resulting decentralized structure has no single point of failure.

Two-Factor Authentication and Multi-Signature Options

During setup, you have the option of incorporating these features for further security. 2FA requires a double layer of authentication before transaction processing. And if you have multiple users for an account, multi-sig measures will help make everyone accountable.

From the above safety features, Electrum Litecoin wallet has placed significant efforts to ensure security for its users. However, they have omitted one important consideration, regulatory compliance.

Very few crypto wallets and service providers are regulated. eToro is one such provider, mentioned earlier, who takes regulations seriously. In every jurisdiction where the platform operates, it is licensed by the relevant authorities.