Bitstamp Warns Users to Stop Depositing at the Exchange, Cites Problem With Hot Wallet

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Bitstamp sent out an email Sunday, telling users to stop depositing bitcoins at the exchange.

The exact details are still fuzzy and it is unclear what has prompted the technical issue. Users however have complained of strange activity and Bitstamp noted that it has detected issues with its hot wallet. The email warns users to stop depositing bitcoins because “private keys of your deposit address may be lost.”

Money that is already deposited at the exchange is safe. The cold wallet is not suffering from the same issue, according to the email.

The Slovenia-based exchange is currently one of the largest Bitcoin exchanges, alongside BTC-e, Coinbase, and others. Last year the exchange went offline temporarily because of DDoS attacks that affected the network. Exchanges help users swap USD and other currencies for Bitcoin.

The full email reads:

Dear customer,

Today our transaction processing server detected problems with our hot wallet and stopped processing withdrawals.

You should STOP SENDING bitcoin deposits to your Bitstamp account IMMEDIATELY as private keys of your deposit address may be lost.

Your bitcoins already deposited with us are stored in a cold wallet and can not be affected.

We will send you more info as soon as possible.

Best regards,

Bitstamp team

Bitcoin has had a rocky start to 2015. The price dipped well below $300 over the weekend and many news outlets have declared it ‘dead’ for the 23rd time.

CoinTelegraph will update with more information as it becomes available.

Bitstamp's services are temporarily suspended. We apologize for the inconvenience. Details:

— Bitstamp (@Bitstamp) January 5, 2015

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