BitStamp Update: $5 Million Reported To Be Stolen from Bitcoin Exchange


BitStamp Update: $5 Million Reported To Be Stolen from Bitcoin Exchange – Its official! Bitcoin exchange BitStamp has reported to have lost $5 million worth Bitcoin in a successful hacking attack. The company earlier assured that all the customers’ funds have been moved to their offline wallets – safe and sound.

“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,” said the excerpt from exchnage’s latest notification.

Meanwhile, BitStamp CEO Nejc Kodric took his Twitter account to calm down the situation. He informed that the breach only took away a fraction of exchange’s total Bitcoin reserves, while the large bulk is still safe in cold storage – a kind of offline account of hard drives, protected by direct hacking attempts due to disconnection with internet.

This although cleared one thing that the BitStamp servers were indeed compromised. But at this point of time, it would be difficult to say whether it was an inside job or a usual hacking attempt. BitStamp, until now, has earned the reputation of being one of the most professional and trustworthy Bitcoin exchanges. But even then, this small incident could single-handedly put a big dent on its polished image. On a major level, it could simply dent the idea of Bitcoin security on whole, giving governments one more reason why-they-should-not-adopt-digital-currencies.

BitStamp, meanwhile, is working with law enforcers to dig out the facts behind this whole incident.

PS: This is not like Mt. Gox.