European bitcoin exchange victim of cyber attack

Europe's biggest Bitcoin exchange has been the target of an online crime and has been hacked again. Cyber thieves have taken about 19,000 bitcoin ($5.2 million) from Bitstamp accounts. The company said it has suspended services after some digital wallets were compromised on the 4th of January.

European bitcoin exchange victim of cyber attack

Europe's biggest Bitcoin exchange has been the target of an online crime and has been hacked again. Cyber thieves have taken about 19,000 bitcoin ($5.2 million) from Bitstamp accounts. The company said it has suspended services after some digital wallets were compromised on the 4th of January.

Bitstamp told customers to withhold from depositing as it works with authorities to find the culprits. The firm said the breach accounts for only a fraction of its total reserves, with most held in secure offline storage systems. A statement was made promising that all balances held prior to the suspension would be repaid in full.

This incident is not the first of its kind; Bitstamp was the victim of cybercrime in February, as the Slovenia-based company stopped withdrawals after hackers overwhelmed the servers in a denial-of-service attack. Bitcoin has lost some of its shine in 2014, its value has dropped significantly and exchanges have been affected due to glitches and hacks.

Bitcoin was created in 2009 and allows users to buy merchandise anonymously. Last month Microsoft (MSFT, Tech30) joined a growing number of companies that accept bitcoins as payment, including PayPal and a handful of restaurants and car services. However, the digital currency remains controversial as it is not government-issued and isn't practical for day-to-day use.

 


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