Bitstamp Resumes Trading

By Aubrey Swanson·10 January 2015·1 min read

Key Points

A leading Bitcoin marketplace Bitstamp reopened for trading on Friday night, concluding a four-day closure stemming from an intrusion into the platform's online storage systems that resulted in the lo

A leading Bitcoin marketplace Bitstamp reopened for trading on Friday night, concluding a four-day closure stemming from an intrusion into the platform's online storage systems that resulted in the loss of roughly $5 million in digital assets. Naturally, commentators drew parallels to the Mt. Gox collapse approximately one year prior, yet Bitstamp's management of the situation displayed fundamental differences—company officials sustained consistent dialogue with users throughout the incident, setting it apart from the infamous Mt. Gox communication breakdown. This communicative approach reflects an industry increasingly demonstrating professionalism and operational competence, something even longtime industry critics acknowledge.

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The reopened platform launched with a completely redesigned user interface alongside announcements of strengthened protective measures. Leadership disclosed specifics regarding their response to the security compromise. "We fully reconstructed our systems from verified backup snapshots onto completely new servers, enabling comprehensive investigation of the breach," officials explained. "This thorough reconstruction approach necessarily meant extended service suspension, yet we felt the heightened protection justified the downtime for our customers."

The centerpiece of Bitstamp's new security architecture consists of a multi-signature key system created in collaboration with BitGo, which company officials characterize as achieving bank-level standards. The system distributes authorization: Bitstamp maintains two signature keys, with BitGo holding the remaining one. The exchange simultaneously migrated its infrastructure to Amazon Web Services, positioning this transition as a complementary layer atop the systematic rebuilding from pristine backup copies.

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