Bitstamp's Transaction Processing Servers Facing Problems
19,000 BTC was Stolen from Compromised Hot Wallet Servers
Update January 5, 2015 11:33 PM PST - Another official statement was released stating that less than 19,000 BTC was in fact stolen. Since that is merely a drop of water to them this will not affect most who made deposits before the times listed. Anyone else may have donated their Bitcoin to this mysterious hacker.
As to where these Bitcoins are going it looks like they are headed to a single address that holds about 18,867 BTC. All of the big transactions the day of January 4th so it follows the time line of when Bitstamp's hot wallet servers were compromised.
Now, will Bitstamp somehow have to buy back all of their lost funds? Likely since they will want to keep their solvency and not do what Mt. Gox did and try to hide it. It will not be an open market buy on any exchange as it would have too much effect to push the market up. Not enough liquidity for that much Bitcoin anyways without push the price up into the heavens.
For now, Bitstamp remains closed. No dates given as to when they will come back online. Security experts will be looking over what caused it. Quite a few are saying it was random number generator (RNG) attack whereby the addresses being generated weren't so random. The hacker could then easily generate private keys based upon the pattern. All speculative until official word comes out.
Bitstamp Suspends Services, Hot Wallets Believed to be Compromised
Update January 5, 2015 8:16 AM PST - Bitstamp appears to have suspended services for temporary maintenance. It is now believed that one of the hot wallets were compromised. The cold storage appears to be alright, and there had not been any big movements from any of those wallets so it is safe to say Bitstamp has more than enough to cover any losses plus commissions can really soak up whatever else was lost. This will affect Bitstamp's bottom line but should not affect users Bitcoins that they hold there.
The funny thing about this whole mess is that I had tweeted about distributing the risk between Bitstamp and Bitfinex 18 days ago. Now, something like this happens and it should really make users think twice before putting all their eggs in one basket. Investing wise and Bitcoin exchange wise. Mitigate the risk as much as possible by either A) using your own wallets and sending Bitcoin as needed to exchanges for trading then back out again, or B) doing like I did and spreading the risk thinner over two exchanges. I really did not have anything in Bitstamp right now so I am all good on that front.
@BitcoinBravo @flibbr I have and still use @Bitfinex. I like to distribute the risk in case one decides to Gox it.
Bitstamp also mentions that deposits made before January 5, 2015 1:00 AM PST will be fully covered by their reserves, and any deposits made after that same time may still be honored. So, for now we know that their has been a possible breach into the Bitstamp's hot wallet servers with possible losses of those funds. Users remain largely unaffected by all of this unless the kept making deposits after the 1:00 AM PST time.
One thing that is certain is that any whales who did some trading on there are now out of the game for the time being. Good or bad? Only time will tell. Just because an exchange does not do well does not mean Bitcoin itself will start tanking. Bitstamp is merely a company providing Bitcoin traders easy access to buy and sell Bitcoins.
|Bitstamp Warning Traders Not To Deposit To Old Addresses|
Right now it seems that Bitstamp is having issues with their hot wallet servers. They are urging people not to deposit Bitcoins to previously generated addresses. In an email sent out to all it states:
Today our transaction processing server detected problems with our hot wallet and stopped processing withdrawals.
You should STOP SENDING bitcoin deposits to your Bitstamp account IMMEDIATELY as private keys of your deposit address may be lost.
Your bitcoins already deposited with us are stored in a cold wallet and [cannot] be affected.
We will send you more info as soon as possible.
Update on Email Headers
It seems that the headers of the emails were deleted.
For the full headers of the email in its entirety Reddit user Krellis has posted them. Check out the full Bitstamp email here.
Whether or not this means that your deposited Bitcoins on Bitstamp are safe it seems that only hot wallets are affected by this. As Bitstamp holds majority of the other funds in cold storage it is likely that all of your Bitcoins are safe. Waiting for Bitstamp to confirm this with any new information they provide.
The Mt. Gox fiasco is all too fresh in our memories still happening over a year ago. In that case it was problems withdrawing not depositing Bitcoins. Bitstamp is most definitely working quickly to resolve these issues. If more information comes in I will try to update this unless of course I am asleep. For now, it does not appear like hackers have breached the hot wallet servers are that Bitstamp is doing a "Goxing."