Third largest U.K.-based Bitcoin Exchange BitStamp now resumes its operations after it went offline due to security breach, nearly losing 12 percent of its bitcoins which is equivalent to 19,000 bitcoins ($5 million funds), USA Today reported.
On the other hand, Coindesk reported that analyst Danno Ferrin claimed a total of $6.6 million BitStamp funds were at risk at the time but BitStamp was able to save $1.7 million funds by moving it to a cold storage that the company used for auditing.
Due to what happened, it came to a point where a lot of bitcoiners compared BitStamp to Japan-based Bitcoin exchange Mt. Gox, wherein the said company lost 850,000 bitcoins, valued around $450 million at the time, leading to its bankruptcy. BitStamp made sure to not end up Mt. Gox position as they were able to reestablish their services after four days of hiatus.
The company rebuilt their systems from scratch to ensure the safety of all transactions being made by its customers. BitStamp, the company started by CEO Nejc Kodrič and was initially operated in Slovenia, claimed that they are just keeping a small capital on its hot wallet and the rest of its digital cash is securely stored in an offline storage, away from digital hackers though the bitcoin exchange company had to still rebuilt the system and get a much secure backup into an entirely new hardware to regain its customer's trust and confidence.
When the bitcoin exchange company went online, its CEO even tweeted comedian Jimmy Fallon and stated that "Hey @jimmyfallon good news. Turns out you CAN keep your bitcoin in a Slovenian exchange. @Bitstamp is open for business and better than ever."
It can be recalled that "The Tonight Show Starring Jimmy Fallon" host joke around BitStamp by saying "If you're not safe to keep your money in a Slovenian bitcoin exchange, where can you keep your money?"