12 Feb 2014

Hackers Target Bitcoin Exchange Market with DDoS Attack

The Bitstamp exchange market for Bitcoin suspended all transfers today after it was hit by a DDoS attack. The DDoS attack exploits a wallet “misunderstanding” and is disrupting balance checking due to the malleability of transactions, the market said.

“These misunderstandings have simple solutions that are being implemented as we speak, and we're confident everything will be back to normal shortly,” the exchange added. “No funds have been lost and no funds are at risk.”

All withdrawals that failed in the past two days will be called off and transferred amounts sent back to customer accounts.

Andreas Antonopoulos, Chief Security Officer for online wallet provider Blockchain.info, told TribLIVE that the DDoS constitution “a nuisance attack. Funds have not been lost and have not been affected. What it's done is slow down their accounting system from reconciling transactions.”