Bitcoin exchange Bitstamp halted after security breachMurad Ahmed / Financial Times , January 6, 2015 9:25 am
Europe’s leading bitcoin exchange has been forced to suspend operations after losing millions of dollars worth of the virtual currency due to a breach of its systems.
Bitstamp, which moved its headquarters from Slovenia to the UK in 2013, has halted withdrawals and advised customers not to make deposits following the apparent hack.
The latest development will fuel concerns about security issues surrounding the nascent bitcoin industry, coming almost a year after problems at the leading Mt Gox exchange led to its bankruptcy and a crisis in confidence in the cryptocurrency.
Bitstamp, considered the world’s third busiest bitcoin exchange, said fewer than 19,000 bitcoins — worth about $5m — had been lost after its “operational wallets” were compromised. The site was taken down on Monday and is yet to resume services.
However, it said the vast majority of its reserves remained untouched as they are held in “cold storage”, meaning they are held on computers not connected to the internet, away from the reach of cyber attackers.
“Bitcoin customers can rest assured that their bitcoins held with us before temporary suspension of services . . . are completely safe and will be honoured in full,” Bitstamp said. It added that it had launched an investigation and said it would “actively engage with law enforcement officials”.
Concerns about whether ordinary users can trade safely in bitcoins have led to a steady fall in the price of the cryptocurrency. At its peak, bitcoin was traded for $1,240 on the Mt Gox exchange.
According to Coindesk, the bitcoin news site, the price is now about $275.
Nejc Kodrič, Bitstamp’s chief executive and co-founder, apologised on Twitter for the issues, saying “we are working diligently to restore service”.
http://www.ft.com/intl/cms/s/0/668a1b0a-957d-11e4-b3a6-00144feabdc0.html#axzz3O8DMo37v 
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