Bitcoin exchange Bitstamp suspends service after security breach

LJUBLJANA (Reuters) – Bitstamp, one of the largest exchanges for trading the digital bitcoin currency, said it has suspended its service after a security breach on Sunday, resulting in loss of around 19,000 bitcoins. The breach represented a small fraction of its total bitcoin reserve and the majority was held in secure offline systems, the Slovenia-based firm posted on its website on Tuesday.

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Texan charged in first bitcoin securities fraud Ponzi case

By Jonathan Stempel NEW YORK (Reuters) – A Texas man who operated Bitcoin Savings and Trust was charged on Thursday with bilking his investors, in what prosecutors called the first federal criminal securities fraud case arising from a bitcoin-related Ponzi scheme. Trendon Shavers, 32, of McKinney, Texas, was charged with misappropriating about 146,000 of the 764,000 bitcoin, then worth more than $4.5 million, that he raised from September 2011 to September 2012 by promising investors “absurdly high” interest rates, U.S.

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