Monthly Archives: January 2015

The virtual exchange of cryptocurrency Bitcoin has always proved to be tricky business, with many still unsure of whether to adopt the intangible money form or not.

The temporary suspension of Europe's leading Bitcoin exchange Bitstamp's services -- a result of a hack yesterday -- does nothing to dispel hesitations.

In a statement released today, Bitstamp revealed that some of its operational wallets had been compromised on 4 January, leading to a loss of no less than 19,000 BTC (3 million).

Officals at Bitstamp ensured that the emergency response to the breach on 4 January was swift, with rapid-fire notifications being released to all customers, instructing them to no longer make deposits to "previously issued Bitcoin deposit addresses.

While the 3m loss may seem serious, Bitstamp says the breach is only a "small fraction of Bitstamp's total bitcoin reserves", the rest of which are "held in secure offline cold storage systems".

Since its inception in 2008, the nascent Bitcoin industry has caused both excitement and trepidation.

The untraceable nature of the cryptocurrency is a characteristic that has often been exploited by darker forces looking for anonymous payment methods.

The clampdown on black market website Silk Road -- which only accepted Bitcoin payments -- in late 2013, along with the invention of a Dark Wallet in 2014 have already dampened the initial hype around the virtual currency.

For the moment, Bitstamp's services are still down, and despite the assurances of Bitstamp representatives, this current breach follows in the wake of cyber attacks in February 2014, which prevented withdrawals for a number of days.

Continued here:
Bitcoin exchange Bitstamp suspended after hack