Another year, another multi-million dollar Bitcoin theft

Another year, another multi-million dollar Bitcoin theft
Earlier today, Bitcoin exchange Bitstamp announced that attackers stole $5 million worth of the digital currency, shutting down trading on the exchange for the day.

CEO Nejc Kodric says most of Bitstamp's reserve are safe but the attackers did net 19,000 bitcoins, over $5 million at the current trading price of $275 USD.

Kodric says that the vast majority of holdings are kept in "cold storage" making them inaccessible for quick online transfers and therefore theft, but the attackers managed to empty out Bitstamp's operational wallet which is used for day-to-day transactions and site business.

Although on a much smaller scale, the theft brings back memories of Mt Gox, which was once the largest exchange until it was pillaged with hundreds of millions in Bitcoins stolen. The site eventually shut down.


Written by: Andre Yoskowitz @ 5 Jan 2015 20:25
Bitcoin Bitstamp
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  • SomeBozo

    While Bitcoins seem nice and convenient i just don't think the world is ready for "digital money". Considering how many companies we see, whom i would think have good security still get hacked.

    Just my $0.02.

    5.1.2015 21:57 #1

  • nonoitall

    Bitcoin or not, the security of most companies that handle money is very lacking. Hopefully Bitstamp is far enough in the black to weather the theft and come back a little stronger and a little smarter.

    5.1.2015 23:06 #2

  • ivymike

    What BitCoin needs is a major bank such as Chase or Citibank to come along and allow the purchase and exchange of BTC to other currency and vice versa via their website(s).

    Only then will Crypto-currency such as BTC be successful and more stable IMHO.

    6.1.2015 03:03 #3

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