Published on January 5th, 2015 📆 | 7854 Views ⚑


Bitcoin Exchange Bitstamp hacked – Site Taken Offline

The new year has begun with a sour note for Bitcoin users and fans. The world’s largest Bitcoin exchange, was taken after it was compromised by hackers.  The site has been taken offline to prevent any more compromise and warned users to immediately stop making deposits to any addresses it issued before 4 a.m. ET Monday.

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The alleged hack which comes a year after the infamous Mt.Gox debacle has further aggravated the already frustrated bitcoin community.  UK- and Slovenia-based bitcoin exchange Bitstamp has stated that it is currently offline and has put up a notice on its website that only one of its ‘operational wallets’ was compromised on 4th January.

The company has assured users that all their bitcoins lying in the cold storage are secure.  The operational wallet consists of a small fraction of bitcoins which are frequently bought and sold.  Most users keep their bitcoins in the cold storage, however when they sell or buy a bitcoin it may enter the operational wallet till the transaction has been completed. The website further stated that it has more than necessary reserves to cover the amount of bitcoins in the compromised operational wallet. The company has not released any further details as to how it was hacked and how the hackers got access to the operational wallets.

Bitstamp’s CEO Nejc Kodrič took to Twitter to assure the Bitcoin Exchange users that all is well within the exchange.
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He further also said that Bitstamp hoped to restore its service later today

Bitstamp has also emailed all its users with a message conveying the hack and asking them to stop all transactions.

Bitstamp amounts for almost 6 percent of all bitcoin transactions carried out. The bitcoins, which are already at their lowest levels at $270.83 may fall further if the issue is not resolved at the earliest.

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