VENTURE CAPITAL POST

Bitstamp, one of the largest exchanges for trading the digital bitcoin currency, said it has temporarily suspended service after "some" of its "operational wallets were compromised" on Sunday, resulting in loss of about 19,000 bitcoins.

Bitcoin derivatives trading platform BTC.sx has secured funding from Seedcoin Fund, BTC.sx Chief Operating Officer George Samman told Reuters on Tuesday.

Bitstamp and BTC-E paused Bitcoin withdrawal from their exchanges starting last week because of a potential glitch but have already resumed withdrawals while Mt Gox, the biggest Bitcoin exchange, still remains closed until now.

Germany-based new digital currency NoFiatCoin (XNF) is backed by gold and silver bullion to give digital currency the added security of the value of precious metals, in case the everything goes down.

With Bitcoin encountering a series of problems lately, including withdrawal halting of exchanges, a $2.7 million heist, and a flaw in the Bitcoin protocol, speculations abound that the Bitcoin is coming to an end soon.

The biggest Bitcoin exchange Bitstamp has temporarily halted processing withdrawals because of a denial-of-service attack but assured users that no funds have been compromised, TechCrunch reported.

A report by the Washington Post noted that Bitcoin's increasing trade value would benefit early investors like Bitcoin lead developer Gavin Andresen and the Winklevoss brothers.