Hackers Steal $5 Million in Bitcoin

Josh Paniagua
January 7, 2015

(ANTIMEDIA) The hackers of the world have been hot in the headlines as of late. The Anonymous ops, Sony leak, attacks on Microsoft and Playstation Network on Christmas, North Korean internet blackouts, and now we have a Bitcoin hack.

Bitstamp announced the breach of a European Bitcoin exchange on Monday and temporarily shut down services to investigate the attack. Around 19,000 Bitcoin ($5.1 million) was stolen by the hackers, but Bitstamp CEO Nejc Kodric assured users that most Bitstamp data is in “cold files” or offline data.

Kodric’s full statement:

Bitstamp customers can rest assured that their bitcoins held with us prior to temporary suspension of services on January 5th (at 9am UTC) are completely safe and will be honored in full.

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. As an additional security measure, we suspended our systems while we fully investigate the incident and actively engage with law enforcement officials.

This breach represents a small fraction of Bitstamp’s total bitcoin reserves, the overwhelming majority of which are are held in secure offline cold storage systems. We would like to reassure all Bitstamp customers that their balances held prior to our temporary suspension of services will not be affected and will be honored in full.

We appreciate customers’ patience during this disruption of services. We are working to transfer a secure backup of the Bitstamp site onto a new safe environment and will be bringing this online in the coming days. Customers can stay informed via updates on our website, on Twitter (@Bitstamp) and through Bitstamp customer support at support@bitstamp.net.

This is another blow to Bitstamp after their largest exchange Mt. Gox collapsed in early 2014. This incident doesn’t hurt them as bad though, as the failure of Mt. Gox cost Bitstamp half of their assets.

Bitstamp is currently offline and working with law enforcement to investigate the hack.

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