It could also lend credence to Jackson Palmer’s theory that a weak RNG attack is responsible for the lost funds; though, server backup migration has also lead Palmer to speculate that the Bitstamp hack could have been a server compromise. 18,866 bitcoins is currently valued at around $5 million USD. ~18,866 BTC represents at least 12% of Bitstamp’s total BTC stash. Bitstamp is currently offline.
Bitstamp Hot Wallet Breach Statement
Bitstamp CEO Nejc Kodrič has issued a new statement:
Bitstamp customers can rest assured that their bitcoins held with us as 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 email@example.com.
Bitstamp Reassures Bitcoin Users
Bitstamp did somewhat prove their BTC reserves last year, and does not seem to have abandoned its users. Yesterday, after community outcry for more transparency from the Bitcoin exchange in this time of turmoil, Bitstamp CEO started tweeting reassuring messages about the situation:
My sincerest apologies to those who are affected by our service being temporary suspended. Details: https://www.bitstamp.net
Thank you all for your patience, we are working diligently to restore service and hope to have an ETA later today.
Kodrič left us with this message:
To restate: the bulk of our bitcoin are in cold storage, and remain completely safe.
Images from Shutterstock.
Last modified: March 4, 2021 4:42 PM