UPDATED 22:13 EST / JANUARY 09 2015

Bitcoin News For 2015 With SiliconANGLE NEWS

They’re back: Bitstamp returns following $5 million hack

Bitcoin News For 2015 With SiliconANGLE

Bitstamp Ltd. resumed trading today after an outage allegedly cause by hacking January 5th.

CEO Nejc Kodrič said in a statement that the company was happy to be back in business, and that they had implemented a “newly redeployed website and backend systems that are safer and more secure than ever.”

Kodrič explained the reasons for the down as follows:

We took the decision to rebuild our systems from the ground up from a secure backup for a few reasons. By redeploying our system from a secure backup onto entirely new hardware, we were able to preserve the evidence for a full forensic investigation of the crime. We have also taken this time to implement a number of new security measures and protocols so that customers can resume using Bitstamp with full confidence and trust. While this decision means we have not been able to provide you with services for a number of days, we feel this extra measure of precaution was in the best interest of our customers.

The changes include the implementation of BitGo Inc.’s Multisig technology, said to provide industry best security practices, and the use of Amazon web services (AWS) in what Kodrič says gives Bitstamp “the most secure and reliable cloud computing environments available.”

In compensation to clients for the long outage Bitstamp will be offering commission free Bitcoin trades for the next week through to 11:59pm January 17th.

Bitstamp’s hacking shook the Bitcoin marketplace this week, with fears from some that it showed signs of being a new Mt. Gox. Their recovery is a positive, but likewise it will take far longer for the market to be confident in using Bitstamp services again; ultimately Bitstamp failed by not having secured their services properly to begin with.


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