Bitcoin Exchange Bitstamp Halts Customer Withdrawals

(Bloomberg) Bitstamp, one of the biggest online Bitcoin exchanges, suspended withdrawals in the latest setback for the virtual currency following a service disruption at a Tokyo-based exchange last week.

A denial-of-service attack, in which a website is flooded with massive requests for data, obstructed Bitstamp’s ability to check account balances, the exchange said in a statement. Customers can withdraw cash but not Bitcoins, as the company works to fix services, Nejc Kodric, Bitstamp’s chief executive officer, wrote in an email.

The value of Bitcoin, which can be used to buy everything from Tesla Motors cars to Gummi bears, was down 1.2 percent at $661.17 at 1:15 p.m. in New York Wednesday, according to the CoinDesk Bitcoin Price Index, which averages exchange prices. Mt. Gox, another major online exchange, restored cash withdrawals on Feb. 10 after suspending services last week because of a technical flaw in how service providers reconcile Bitcoin transactions.