A year ago, the world’s largest bitcoin exchange platform Mt. Gox went bankrupt after it was hacked and more than half a billion dollars were stolen. At the time, much of the financial community concluded that it started the downfall of bitcoin, and they may be right considering that the peer-to-peer decentralized digital currency has traded below the $300 mark.
It was reported Monday that the UK- and Slovenia-based bitcoin exchange Bitstamp has gone offline due to a possible attack. The company announced that it went offline in order to investigate a potential security incident that may have compromised some of its digital currency.
Bitstamp hasn’t offered any details regarding the situation. In the meantime, however, officials have warned users to cease making bitcoin deposits and informed customers that their money is currently frozen in company accounts.
“Bitstamp takes our security and soundness very seriously,” the company said in a statement posted on its website. “In an excess of caution, we are suspending service as we continue to investigate. We will return to service and amend our security measures as appropriate.”
Although Bitstamp isn’t the largest bitcoin exchange website in the world today – it only accounts for less than 10 percent of all transactions – it has garnered one of the best reputations in the virtual currency industry because it has been the longest-lasting outlet and most secure exchange thus far.
CEO Nejc Kodrič attempted to calm some bitcoiners down Monday by reiterating that their holdings are safe and that the support team is working hard to restore service.
Thank you all for your patience, we are working diligently to restore service and hope to have an ETA later today.
— Nejc Kodrič (@nejc_kodric) January 5, 2015
To restate: the bulk of our bitcoin are in cold storage, and remain completely safe.
— Nejc Kodrič (@nejc_kodric) January 5, 2015
At the time of this writing, bitcoin is trading at around the $270 mark.
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