Latest in Bitcoin

Image credit:

Bitcoin exchange loses $5 million in security breach

63 Shares
Share
Tweet
Share
Save

Sponsored Links

Bitstamp has just suspended its Bitcoin exchange services, because some of its operational wallets have been compromised. And, while it's nowhere near the scale of the Mt. Gox debacle (850,000 Bitcoins gone), the company says hackers still made off with 19,000 BTC or roughly $5 million. The service clarifies on its website (which now shows a splash page) that the stolen money came from its online wallets only and that the "overwhelming majority" of its reserves are stored safely offline. According to ZDNet, the service had $96.9 million store in offline storage in May 2014, but the amount might have gone down due to fluctuating Bitcoin values.

Bitstamp says it will honor any transaction made before January 5th, 4AM Eastern, but it warns users (in bold and all caps) not to transfer anything to "previously issued bitcoin deposit addresses" anymore as those transactions cannot be honored. It also promises to go back to business in a few days once it's done moving to a more secure server.

Some users believe this page lists the illegal transactions that's crippled Bitstamp, since they're worth 18,868 BTC in all made over the weekend. But we still don't know what exactly went down, especially since no group of hackers has stepped forward to claim the security breach. Seeing as authorities still don't have a clear picture of the Mt. Gox fiasco in 2014, we might have wait a long while before we find out what happened to Bitstamp.

[Image credit: Getty Images]

Via: ZDNet
Source: Bitstamp
In this article: bitcoin, bitstamp, hack
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
63 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's Guide to Privacy

Engadget's Guide to Privacy

View
AT&T reportedly considers offloading its DirecTV satellite unit

AT&T reportedly considers offloading its DirecTV satellite unit

View
T-Mobile’s Sprint merger is opposed by 18 state attorneys general

T-Mobile’s Sprint merger is opposed by 18 state attorneys general

View
HBO Max will revive 'The Boondocks' for a two-season run

HBO Max will revive 'The Boondocks' for a two-season run

View
Microsoft plans to bring broadband to 9 million more Americans

Microsoft plans to bring broadband to 9 million more Americans

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr