Bitstamp: More than $5 million were stolen

Bitstamp: hackers have stolen more than $5 million

credit: ssoosay

Another bad news in the new year: Bitstamp, a Bitcoin exchange, has frozen accounts and transactions after fraudsters made off with 19,000 Bitcoins. The company that is based in Slovenia said yesterday that they didn’t find out who has stolen the Bitcoins and so far they don’t can say how it happened. Bitstamp users are worried and think back to the Mt.Gox hack last year whereby many of them lost Bitcoins.

In a Tweet Nejc Kodrič, Bitstamp CEO said:

The bulk of our Bitcoin are in cold storage, and remain completely safe

Previously Bitstamp said that they keep up to 90 per cent of its funds in cold storage, which is to say they keep it up on hard dreives that are off the grid and harder to hack. So the attack hit the remaining 10 per cent of Bitcoin that ist stored in a data center – the hot wallet.

Now Bitstamp is working with law enforcement to investigate what happened. A spokesman of the company provided following statement to Fortune:

Bitstamp customers can rest assured that their bitcoins held with us as prior to temporary suspension of services on January 5th (at 9am UTC) are completely safe and will be honored in full.

On January 4th, some of Bitstamp’s operational wallets were compromised, resulting in a loss of less than 19,000 BTC. Upon learning of the breach, we immediately notified all customers that they should no longer make deposits to previously issued bitcoin deposit addresses. As an additional security measure, we suspended our systems while we fully investigate the incident and actively engage with law enforcement officials.

This breach represents a small fraction of Bitstamp’s total bitcoin reserves, the overwhelming majority of which are are held in secure offline cold storage systems.

We would like to reassure all Bitstamp customers that their balances held prior to our temporary suspension of services will not be affected and will be honored in full.

We appreciate customers’ patience during this disruption of services. We are working to transfer a secure backup of the Bitstamp site onto a new safe environment and will be bringing this online in the coming days. Customers can stay informed via updates on our website, on Twitter (@Bitstamp) and through Bitstamp customer support at support@bitstamp.net.”

Facebooktwittergoogle_plusredditmailby feather

Leave a Reply