Statement by Bitstamp regarding Mt Gox insolvency
Bitcoin Is Still Working and Still Has a Bright Future
The worldwide peer-to-peer payment system and crypto-currency known as Bitcoin is not dependant on any one actor. The Bitcoin protocol continues to work exactly as designed. Bitcoin remains strong despite the failure of any one exchange and will continue to grow and thrive as long people desire that it do so.
Losses Limited to Balances at MtGox
It is important to underscore that the losses of fiat currency and Bitcoin are limited to those balances that were in MtGox’s care. The MtGox exchange can best explain how this happened.
Bitstamp Customers are Safe and Our Business is Solvent
We at Bitstamp have conducted a thorough audit of our bitcoin accounts, as well as the fiat currency reserves we maintain in the bank. Bitstamp maintains all of its customers’ bitcoin and cash deposits and nothing is amiss.
Bitstamp is Not Subject to the Transaction Malleability Vulnerability
Bitstamp uses a different protocol to handle problems in closing out its transactions and is not vulnerable to the “transactional malleability” issue that was apparently exploited at Mt. Gox. Additionally, we manually double-check every transactional problem encountered by our customers.
We are taking steps to provide Bitstamp’s customers with the utmost confidence in our operations:
1. Bitstamp is financially stronger than ever. We have the most customers, and the most solid capital base, than we have ever had.
2. Bitstamp has retained the best available security and compliance advisors to assist us in protecting our clients.
3. Bitstamp prides itself on industry-leading compliance with its AML and KYC procedures.
4. Bitstamp is now performing quarterly financial audits and will post our financial reports on our web site.
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