​5 Million Bitcoin Stolen: Customers Worry About Bitcoin Amid Bitstamp Hack

Author: John LesterBy:
Follow Twitter:
January 6, 2021

$5 million in bitcoins have been stolen after Bitstamp discovered that a hacker had compromised the crypto-currency wallets on Sunday. The company suspended its services on Monday as it determined that its operational wallets had been accessed without authorization, according to ZDNet. These Bitcoin wallets hold the capital needed for daily exchange operations.

“On January 4th, some of Bitstamp’s operational wallets were compromised, resulting in a loss of less than 19,000 BTC,” Bitstamp said.

Within hours of the stolen Bitcoins, a $5 million investigation was opened by law enforcement. The method of the intrusion was not disclosed, but customers received assurance that their digital money was not in any danger if deposits were made before 09:00 UTC on January 5, 2015. The same applies for any deposits made after this time and date.

“Upon learning of the breach, we immediately notified all customers that they should no longer make deposits to previously issued bitcoin deposit addresses,” Bitstamp says.

As $5 million in bitcoins were stolen, the company continued to reassure customers that the loss is only a small fraction of the money stored offline and that the balances held before the temporary service suspension would remain unaffected.

Customers are advised to make deposits only on the newly issued bitcoin addresses in order to make sure that their money is safe, according to Examiner. No transaction made to addresses issued before the suspension of the service can be honored, Bitstamp warned.

After $5 million in bitcoins were stolen, service went down immediately as Bitstamp works to restore a safe backup of the website; company representatives said that the entire process should be completed in the coming days.

Bitstamp CEO Nejc Kodric has said that his company will assume liability for all bitcoins lost prior to its warning today about the hacking. In a tweet today, he tried to reassure his customers, saying:

“To restate: the bulk of our bitcoin are in cold storage, and remain completely safe.”

It appears that a large transaction has been recorded on Sunday morning, different amounts of bitcoins being exchanged, totaling 134 operations at the moment, the final balance being a little over 18,870 BTC.

The $5 million in bitcoins were stolen fits the information about the hack provided by Bitstamp, but there is no official confirmation that this is related to the incident. The company remains quiet as they restore the bitcoin service to customers, notes The Next Web. This was the first hacking incident against the company.

Share this article