BitStamp Hacked for 19,000 BTC

Bitstamp, one of the largest European cryptocurrency exchanges, experienced a significant security breach. The hack resulted in the loss of approximately 19,000 BTC, which was valued at around $5 million at the time. The incident occurred within Bitstamp’s hot wallet system, which is a type of Bitcoin wallet that is connected to the internet and allows for immediate transactions.
 

Following the discovery of the breach, Bitstamp promptly notified its customers to refrain from making deposits to previously issued Bitcoin deposit addresses. The company also suspended its operations to investigate the incident and engaged with law enforcement officials.
 

Bitstamp’s CEO, Nejc Kodrič, assured customers that the compromised amount represented only a small fraction of Bitstamp’s total Bitcoin reserves. The majority of the reserves were held in secure offline cold storage systems, which were not affected by the hack. Kodrič confirmed that all balances held prior to the suspension of services would be honored in full.