Now Bitstamp Suspends Bitcoin Transactions

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Now Bitstamp Suspends Bitcoin Transactions

After Mt. Gox, now Bitstamp users are facing problem as it has suspended Bitcoin transaction process. In its statement issued the Bitcoin exchange says that its software is extremely cautious concerning Bitcoin transactions and currently it has suspended processing Bitcoin withdrawals due to inconsistent results reported by our Bitcoin wallet.

The Bitcoin exchange says that the problem has been caused by a denial-of-service attack using transaction malleability to temporarily disrupt balance checking. The statement issued says that as such, Bitcoin withdrawal and deposit processing will be suspended temporarily until a software fix is issued; thus, there is no timeline by what time it will be fine and working.

Currently, Bitstamp says that no funds have been lost and no funds are at risk. It says that this is a denial-of-service attack made possible by some misunderstandings in Bitcoin wallet implementations. According to Bitstamp these misunderstandings have simple solutions that are being implemented as it speaks. It says that it is confident everything will be back to normal shortly.

Nevertheless, the notice on the website of the Bitcoin exchange says that withdrawals which failed on the 10th and 11th of February will be canceled and the amounts added back to the customer account balances. At the same time Bitstamp hopes that everything will be alright soon and it will communicate any further developments regarding this issue.

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Technical Glitch Has Already Hit Mt. Gox

Earlier ForexMinute reported about Mt. Gox and how its business was affected by the technical glitch as it says it faced. Though the Bitcoin Foundation revert the argument on the part of Mt. Gox that it was a glitch in Bitcoin, vulnerabilities in Bitcoin’s transaction network were thrust into the spotlight this week.

Mt. Gox blamed an underlying software glitch for its technical problems. In its statement the Tokyo-based Mt. Gox exchange underscores worries about Bitcoin’s payment network, which relies on computers and software to move billions of dollars of the virtual currency around the world. A lot of hue and cry being made that if such a situation continues, Bitcoin will lose in the end.

Also, an apprehension is there that a technical glitch like this could unsettle the global computer network as well. This is a new kind of problem that Bitcoin is facing; hither to, most of the issues surrounding the virtual currency had been related to its potential use in criminal activities.

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

  • BillB

    CONSTANCY I see is the Media’s relentless “potential illegal uses of Bitcoin” This is OLD news and just as the US Dollar and EVERY Currency and might I add the bankers themselves been laundering HUNDREDS OF BILLIONS for Terrorists and Drug Cartels and no-one went to jail!