Bitcoin exchange Bitstamp reopens with improved security following $5 million heist

[Shawn Knight]

Bitcoin exchange Bitstamp is back open for business after being taken offline earlier this week to investigate a potential security breach.

Bitstamp CEO Nejc Kodrič explained in a blog post that they took the site offline so they could redeploy from a secure backup onto entirely new hardware. This allowed them to be able to preserve the evidence for a full forensic investigation of the crime.

The downtime was also used to implement several new security measures and protocols so customers can continue to use the service with full confidence and trust. Some of the key improvements include a shift over to Amazon’s AWS cloud infrastructure, the aforementioned new hardware installation and implementing BitGo multi-sig technology.

As a "thank you" to the site’s loyal customers, all transactions conducted on Bitstamp through the end of the North American Bitcoin Conference will be commission-free. That event runs through January 17 so if you have some trading to do, now would be the time to make it happen.

It’s worth reiterating that all balances held at the exchange prior to the security breach will be honored in full meaning customers don’t have to foot the loss here.

Kodrič didn’t provide any insight into how the hackers infiltrated the system or who might be responsible. The anonymous nature of the cryptocurrency will likely make it incredibly difficult to track down the stolen funds.

Permalink to story.

https://www.techspot.com/news/59367-bitcoin-exchange-bitstamp-reopens-improved-security-following-5.html

 

[JohnCB]

As a "thank you" to the site’s loyal customers, all transactions conducted on Bitstamp through the end of the North American Bitcoin Conference will be commission-free.

Sorry we lost 5 million dollars of your money. For the next week all transactions are free! You're going to keep giving us your money right? We SWEAR that was a total fluke, definitely not an inside job and we promise, cross our hearts we'll never lose your stuff again. We cool?

 

[oldikes]

As a "thank you" to the site’s loyal customers, all transactions conducted on Bitstamp through the end of the North American Bitcoin Conference will be commission-free.

Sorry we lost 5 million dollars of your money. For the next week all transactions are free! You're going to keep giving us your money right? We SWEAR that was a total fluke, definitely not an inside job and we promise, cross our hearts we'll never lose your stuff again. We cool?

This allowed them to be able to preserve the evidence for a full forensic investigation of the crime.

because people involved in inside jobs take photographs of the scene of the crime. seems legit?
I mean its valid to expect the possbility of an inside job (especially after gox) but the sheer fact that they made that backup....yea.

 

[captaincranky]

The price of Bitcoin is quite volatile. So, stealing $5,000,000.00 dollars worth when the price is down makes perfect sense. It's exactly the same as purchasing commodity or stock futures.

Payday isn't right away, but that 5 mil could be worth 10 mil, a year from now.

Since this exchange has chosen to cover the loss, it is exactly the same as purchasing futures.

 

[ypsylon]

BTC, just like all other crypto-currencies, going down the drain. From perspective of last just 2 years going from highly secretive (often criminal) currency to fairly well known today. If you take into account that BTC lost most-by-far value of all currencies (crypto and 'ordinary' ones) I can't see much future for it. Implosion is not far away.

At the moment mining for BTC is more than prohibitively expensive (especially for beginners) and getting worse with every passing minute. Cost of mining in last 3 years raised by thousands of %. I got rid off all mining gear almost year ago and now laughing at people investing *****ic sums of real money just to mine couple coins. It was best move ever. As far I'm concerned it can crash and burn.