Bitcoin exchange service Bitstamp has suspended its services after its wallet system was compromised to the tune of more than $5 million dollars. This is one of many security breaches involving Bitcoin exchange services, which has caused a few of the largest services to close their doors.
Once Bitstamp realized that it had been compromised, it immediately suspended all exchange services. Bitstamp says the breach affected only a fraction of its total Bitcoin reserves and that any exchanges made prior to the service suspension are safe. Still, the Bitstamp breach reminds us that virtual currencies have a ways to go and that Bitcoin-based businesses may not be prepared to mitigate these attacks without affecting their customers. Read more.