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Bitstamp Bitcoin Exchange Suspended Due To "Compromised Wallet"

Posted by samzenpus on from the that-old-familiar-story dept.

twitnutttt writes Customers of Bistamp, the successor (until recently) to MtGox as the highest-volume dollar-denominated Bitcoin exchange, and still the preferred source of trading data for many technical analysts, sent an email at about 4:00 UTC today warning that, "Today our transaction processing server detected problems with our hot wallet and stopped processing withdrawals." They also instructed users to stop sending any deposits immediately or they may be lost. The Bitstamp website has now also suspended all exchange/trading services, and the homepage contains only a maintenance message warning users of a "compromised" wallet. Numerous references to security imply that this is a hacking attack, but Bitstamp reassures that they maintain "more than enough offline reserves to cover the compromised bitcoins."

5 of 161 comments (clear)

  1. Somehow banks... by TWX · · Score: 3, Insightful

    ...with the regulations in place that generally put limits on their bad behavior, aren't looking so bad now, are they?

    And for those who want to go off on overdraft fees, you can have your account set to simply not let you go overdraft. It'll deny any transactions that would let you overdraft though, so it's a catch-22.

    I have no love for big banks, but at least there are rules governing how my accounts are handled, they can't brazenly steal all my money in one swoop.

    --
    Do not look into laser with remaining eye.
    1. Re:Somehow banks... by Anon-Admin · · Score: 3, Insightful

      Right, regulations help.

      Back some years ago I was using a bank that over drafted me. I say they over drafted me because they showed an ATM withdraw some 50 miles from where I was that caused my account to over draft.

      I had paid the overdraft fees and explained to them that I could not have been there to withdraw the $62 they claim. The lady tells me that as per bank policy I am responsible for the first $50 lost from the account and there would be a $10 "search" fee for them to research what had happened and determine if I had withdrawn the money or it was a bank error. My simple question, "If it turns out to be a bank error do i get my $52 back?" Well no, as per policy I was responsible for the first $50 lost so I would only get $2 back.

      I told them to do the research, give me my $2 and close my account. The bank persons response, "Absolutely, there is a $2 filing fee to start the search, $10 for the search, and you are responsible for the first $50 lost. Then there will be a $15 fee to close out your account."

      It amazes me how they lost the exact amount that it would require to $0 out. I close that account and simply moved of. The moral of this story is you may have faith in religion, with all others watch your ass because they will take all they can get.

    2. Re: Somehow banks... by jellomizer · · Score: 3, Insightful

      Innovation like being able to have low interests on a high risk loan. By selling fractions of that loan across many organizations so the liability of any one loan isn't so great.

      This seemed like a good idea at the time. The person getting the loan can get a low interest payment, the person who is selling the loan can get the commission for the loan, the sub prime lenders make out as they get for the most part their money back....
      Just as long as the economy doesn't sink, and those high risk individuals start dropping out in droves. Meaning you have a lot of assets in high risk loans which are failing.
      Because while the risk was reduced for the individual purchase, the risk was increased over the aggregate.

      Now during the boom time, this was seen by most people as a good thing. They were worrying about the housing market to pop, but not on the fact the lenders were loading up on high risk loans. Because as most people saw it. That these people can get low interest rates for homes, thus improving the number of home owners that can build wealth over time.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  2. Utterly predictable by jareth-0205 · · Score: 2, Insightful

    So who still thinks Bitcoin is a usable practical idea?

    1. Re:Utterly predictable by jareth-0205 · · Score: 3, Insightful

      With the massive caveat that real money banks are backed and insured at the state-level (atleast in Europe, where most governments guarantee a certain amount of savings), while who the hell knows how well these websites are capitalised and secured.