Quote from: mp420 on February 10, 2014, 10:34:38 AM

Quote from: maaku on February 10, 2014, 10:30:12 AM

It is not even clear that the malleability problem is solvable. Besides the problem that there is innumerable ways to transform a transaction to give it a different hash without affecting scriptSig validity, it is simply unknown whether it is possible to algebraically transform an elliptic curve signature without invalidating it. If so, then no matter what you do to cover up the other holes, that gaping one is left open.

Transactions are malleable. Deal with it. If a transaction is observed on the network that has the same input outpoints and the same outputs, it is the same transaction, and mtgox should treat it as such. This is a simple check to do, and trivial to automate.

This is what I'd gather from my limited understanding of the protocol. Why aren't they doing this?

Simply because they are incompetent.

Bitstamp, BTC-E, BTC-China, Huobi, OKCoin: all of these have higher transaction volume than MtGox. Did you ever see a report of similar issue from them?