Second Largest Bitcoin Exchange Loses $5M

On Monday, the second largest dollar-bitcoin exchange suspended operations  due to a security breach that caused approximately 19,000 bitcoin (equivalent to $5.1 million) to be lost. The exchange maintains customers will be able to fully recover their bitcoin stored by the exchange prior to Monday.

Bitstamp CEO, Nejc Kodric, tweeted on Monday,

Thank you all for your patience, we are working diligently to restore service and hope to have an ETA later today.”

And then later that day,

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

In other words, 85-90 percent of customer funds are in cold storage while 10-15 percent remains at risk.

The currency dropped to $287 as of Wednesday following a week in the mid-300s. Analysts claim this is a pivotal moment for cryptocurrency.

Fast Money trader Brian Kelly wrote as quoted by CNBC,

This is a critical moment for Bitcoin. As Adam Smith said, ‘all money is a matter of confidence’ and the reaction to this potential hack will either serve to undermine or bolster confidence.”

 

Read more here- “Bitstamps Exchange Hacked, $5M Worth of Bitcoin Stolen,” (Zack Whittaker, Zero Day)

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Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.

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