Bitstamp Claims $5 Million Lost in Hot Wallet Hack

Bitstamp has released a new statement regarding the security of its website, admitting that it has lost “less than 19,000 BTC”, about $5.1m at press time.
The revelation follows the disclosure that Bitstamp’swallet system was compromised, prompting it to halt deposits and later shut down its platform entirely.
According to the statement, an undisclosed number of wallets were compromised and upon learning of the breach, the Bitstamp team issued warnings about deposits and moved to suspend operations. Bitstamp CEO Nejc Kodri said that all other funds held by the bitcoin exchange are secure in cold storage, stating:
‘This breach represents a small fraction of Bitstamp’s total bitcoin reserves, the overwhelming majority of which are are held in secure offline cold storage systems. We would like to reassure all Bitstamp customers that their balances held prior to our temporary suspension of services will not be affected and will be honored in full.’

This post was published at Coin Desk on January 5, 2015.