BITSTAMPS BACK!

[colinistheman]

Yes, they're back up, and after 20 minutes there's been enough volume to get them back in sync with the other markets, around $288. Bitcoinwisdom is tracking Bitstamp, but Bitcoin Charts (which is owned by Karpeles) is not.

That didn't take long. All is back as usual after 20 minutes.

The media loves the crash stories... now let the media write about this.

[1714988811]

1714988811

[Lethn]

I'd be very surprised if they even acknowledged this positive thing at all, they like to focus on a narrative and once they've decided with it they'll go with it even when piles of evidence stack up against them.

[Nagle]

The next question is whether Bitstamp is now insolvent.  They lost $5 million.  Did they get new funding to replace that, did they have enough capital of their own, or are they dipping into customer funds?  Their statements have carefully avoided mentioning this issue.

If a real stockbroker lost funds like that, and became insolvent (debts > assets), they would have to stop operations immediately.  In some jurisdictions it is a felony for a broker to continue to accept funds once insolvent.  They don't get to "fix it later". That's because, historically, the temptation to fix it by speculating with customer funds has been a big problem.

With withdrawals working again, it's probably a good idea to get your assets out of Bitstamp. Don't use them as a wallet. Trade there if you like, but empty out your account when not actively trading.

Bitstamp now needs a full audit by an outside auditing firm.

[Lethn]

With withdrawals working again, it's probably a good idea to get your assets out of Bitstamp. Don't use them as a wallet. Trade there if you like, but empty out your account when not actively trading.  

That should be standard practice for any exchange, never use exchanges and online wallets or any public service for longterm storage, you do not have control over your coins there!

[TechnoBibble]

Happy to see they are back and being honest about the situation

[calci]

The next question is whether Bitstamp is now insolvent.  They lost $5 million.  Did they get new funding to replace that, did they have enough capital of their own, or are they dipping into customer funds?  Their statements have carefully avoided mentioning this issue.

If a real stockbroker lost funds like that, and became insolvent (debts > assets), they would have to stop operations immediately.  In some jurisdictions it is a felony for a broker to continue to accept funds once insolvent.  They don't get to "fix it later". That's because, historically, the temptation to fix it by speculating with customer funds has been a big problem.

With withdrawals working again, it's probably a good idea to get your assets out of Bitstamp. Don't use them as a wallet. Trade there if you like, but empty out your account when not actively trading.

Bitstamp now needs a full audit by an outside auditing firm.

That might be a possibility . To become solvent they would need to purchase 18K bitcoins, and I am not sure if they already did that or plan to do that .

[Coinshot]

What happens to the stolen 19,000 BTCs? Bitstamp has a roadmap to pay it off to the customers.
I think Bitstamp is finished. I personally would never transfer anything in there.

[pawel7777]

The next question is whether Bitstamp is now insolvent.  They lost $5 million.  Did they get new funding to replace that, did they have enough capital of their own, or are they dipping into customer funds?  Their statements have carefully avoided mentioning this issue.

If a real stockbroker lost funds like that, and became insolvent (debts > assets), they would have to stop operations immediately.  In some jurisdictions it is a felony for a broker to continue to accept funds once insolvent.  They don't get to "fix it later". That's because, historically, the temptation to fix it by speculating with customer funds has been a big problem.

With withdrawals working again, it's probably a good idea to get your assets out of Bitstamp. Don't use them as a wallet. Trade there if you like, but empty out your account when not actively trading.

Bitstamp now needs a full audit by an outside auditing firm.

Agree, that's the missing part of the statement - how are they going to cover the lost funds? After all the shit from Mt Gox it would be nice if bitstamp were more transparent on this.

Although, if Pantera bailed them out, both sides may not be very keen on disclosing the details. And this part slightly suggest that this could be the case:

On a personal note, I’d like to thank the incredible teams at Bitstamp and at our lead investor Pantera Capital who have worked around-the-clock from multiple time zones in the last few days. I’m incredibly proud of the herculean work of this extended team, and grateful to the phenomenal show of support from customers, friends, and partners in the bitcoin community.

Hopefully they won't qualify for audit exemption in their 2nd year of trading.

[Coinshot]

That might be a possibility . To become solvent they would need to purchase 18K bitcoins, and I am not sure if they already did that or plan to do that .

I highly doubt they have the finances to buy it outright. I think they will have a plan where they slowly pays back the customers over time, or offers them a stake.

[Morecoin Freeman]

That was an incredible quick fix by Bitstamp. Good trustworthy company.

[Shattered]

I really hope everything eventually works itself out with Bitstamp.
I would hate to see another black eye on the shiny face of BTC to start the new year.

[Puppet]

I highly doubt they have the finances to buy it outright. I think they will have a plan where they slowly pays back the customers over time, or offers them a stake.

Thats most likely what MtGox wanted to do. And then the price went ballistic.
Bitstamp doesnt didnt lose $5M; they lost a shitload of bitcoins and as long as they dont obtain them, their liability has no upper limit.

[flipstyle]

Would definitely withdraw asap if I were a current user...don't make the same mistake.  They're back up, but that still doesn't solve the fundamental problem of their losses or intended plan to make up for the stolen funds.  Seen this happen with coinex and cryptorush with a 're-opening.'  The lost funds are going to come out someone's pocket.

[kingcrypto]

I have already withdraw all of my bitcoins succesfully

[QuestionAuthority]

I have already withdraw all of my bitcoins succesfully

I was able to take everything out too.

[smashing]

The next question is whether Bitstamp is now insolvent.  They lost $5 million.  Did they get new funding to replace that, did they have enough capital of their own, or are they dipping into customer funds?  Their statements have carefully avoided mentioning this issue.

Bitstamp is Silicon Valley, VC backed (Pantera). They were always going to come back and do things right. No chance of insolvency or funny business whatsoever.

[bitkilo]

This is great news!
Other members were saying bitstamp will be back but i wasn't so sure, I'm happy to be proved wrong in this case.
With Pantera behind them this does look like a safe company.

[jacktheking]

Ha. Most of us predict that Bitstamps will be back. Since it is back.. Bitcoin price gonna rise again.. .

[blg425]

So happy we have great exchanges in my country, nor verification time, 5 min entering any website no registration, payment and Bitcoins are send. It's perfect. Main reason is that one of our payment methods is instant and usually non-refundable so they know the funds are there, are immidiatly send to the exchange and with that confirmation the BTC gets transfered.

I did register today on Bitstamp for the. First time, but by the time I would be verified, allowed to buy and have funds deposited...

[johnyj]

The next question is whether Bitstamp is now insolvent.  They lost $5 million.  Did they get new funding to replace that, did they have enough capital of their own, or are they dipping into customer funds?  Their statements have carefully avoided mentioning this issue.

If a real stockbroker lost funds like that, and became insolvent (debts > assets), they would have to stop operations immediately.  In some jurisdictions it is a felony for a broker to continue to accept funds once insolvent.  They don't get to "fix it later". That's because, historically, the temptation to fix it by speculating with customer funds has been a big problem.

With withdrawals working again, it's probably a good idea to get your assets out of Bitstamp. Don't use them as a wallet. Trade there if you like, but empty out your account when not actively trading.

Bitstamp now needs a full audit by an outside auditing firm.

Not a big deal, they have so many coins sitting in the cold storage collecting dust. Their reserve ratio is much higher than any banks in the world, which typically have only 20% of customer funds at hand while still serve the customer for decades