Bitstamp suspends Bitcoin withdrawals following denial-of-service attacks

The world's second biggest Bitcoin exchange, Bitstamp, has announced that it has suspended Bitcoin withdrawals following a denial-of-service attack on the exchange.

According to Bitstamp, the denial-of-service attack caused by difference in wallet implementations has resulted in transaction inconsistencies as well as disruptions with balance checking. The exchange will not be processing deposits and withdrawals till a fix for the issue is put in place. The transactions carried out during the 10th and 11th of February will be cancelled and the amount will be reverted.

The value of Bitcoin dropped by a sharp 20 percent to $538 before climbing back to $648 in just a couple of days, which often leads to heavy transactions from short-term investors. According to Andreas Antonopoulos, chief security officer for Blockchain.info whose app was removed from the Apple App Store recently, "Funds have not been lost, and have not been affected. What it’s done is slow down their accounting system from reconciling transactions."

As Bitcoin continues to struggle with currency regulators around the globe, disruptions from hackers can be a major setback even if no funds are reported stolen.

Source: Bloomberg | Image via Salon

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13 Comments

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Anything can have value as long as people agree it has value; it doesn't have to be backed by a government. Doesn't matter if it is piece of paper with dead presidents on it, sea shells or World of Warcraft gold. Will cryptocurrency last, I don't know. I've already bought a brand new PC from selling cryptocoins though and even those silly Dogecoins have bought me quite a lot of games on Steam.

Silly Dogecoins? That's like December 12, 2013 for you. Dogecoins are getting more and more valuable by the day. The only silly they had is their name, and nobody cares about it anymore.

shadodemon said,
Doesn't that seem like something convinient that certain agency that starts with N.S would have something to do with that?

Suffering much from conspiracy worries? Maybe put into your head by a certain agency that starts with NS...

-adrian- said,
Well - so you want the bank system to crash basically

here we go again, don't make me start explaining why these two are fundamentally different.

trojan_market said,

explain these simple question:
1. who issues bitcoins?
2. how many bitcoins are there max? (don't tell me unlimited because then it would worth less than a penny)
3. what happens if something similar would come out and become trending? (bitcoin x)

1. No person, company or government issues Bitcoins. You obtain them by putting your computer to work solving transactions and complex math problems. As more people mine them the difficulty increases to control the amount that are released.

2. There will be a maximum limit of 21 million bitcoins, though it will be many years before this limit is reached as the difficulty of mining them continues to increase.

3. There are already many alternate coins such as Litecoin, Peercoin, Vertcoin, etc. People introduce new coins attempting to introduce new features or overcome shortcomings of bitcoin. So far none of them have come close to Bitcoins value however.