Bitstamp Halts Withdrawls

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

A denial-of-service website attack obstructed Bitstamp’s ability to check account balances, the exchange said in a statement. Customers won’t be able to withdraw funds until a software fix is issued and transactions that failed today and yesterday will be canceled, the company said.

Mt.Gox, the other major online exchange, said on Feb. 7 that it stopped withdrawals because of a technical issue, triggering an 8 percent decline in the value of Bitcoins. The virtual currency was trading at $658.58 at 2:03 p.m. in New York, according to the CoinDesk Bitcoin Price Index, which averages prices from exchanges including Mt.Gox and Bitstamp. Bitcoin is now down about 17 percent since Mt.Gox disclosed its difficulties with customer accounts.

“No funds have been lost and no funds are at risk,” Bitstamp said.

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