BitStamp Resumes Operations

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BitStamp Resumes Operations

BitStamp, one of the largest Bitcoin exchanges out there in the Bitcoin ecosystem that had suspended its service after the breach resulted in the loss of around 19,000 Bitcoin with a value of some $5 million, has informed customers that it has resumed operations. The decision has given respite to a lot of people who smelled an Mt. Gox like situation.

Mt. Gox that lost millions of dollars of investors is still in the memories of people and in such a situation the Bitcoin ecosystem cannot afford to have another such collapse. The resuming of trading after suspending operations because of a security breach on Sunday is assuring to customers.

Though BitStamp had said it expected that trading could resume within 24 hours and added that customers would not lose money because of the breach and that security would be increased, they were able to do this on Friday. The company informed that various institutions from the European Union and the United States were investigating the security breach.

Enhanced Security Measures

The Bitcoin exchange reopened its operations; however, this time it has come up prepared. BitStamp’s CEO Nejc Kodrič said in a statement on the company’s website said that the company has moved its system to Amazon’s cloud services and added additional security features to make compromises more difficult.

The statement further says, “By redeploying our system from a secure backup onto entirely new hardware, we were able to preserve the evidence for a full forensic investigation of the crime.” He says that while this decision means the company has not been able to provide customers with services for a number of days, it feels this extra measure of precaution was in the best interest.

The best part about BitStamp is that it only had a small amount of its total Bitcoin capital in its hot wallet, with the rest of the digital cash in cold storage, typically secured in an offline storage system. The Bitcoin exchange has long been assuring the customers that cold storage is safe and secure than hot storage.

Kodrič’s statement also informed that the team at the Bitcoin exchange has been working day and night to rebuild and restore security to the BitStamp site so customers can resume transacting with it quickly, safely, and confidently. According to him, BitStamp is now fully operational, with a number of key improvements.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com