Bitstamp

Bitstamp
Type	Cryptocurrency exchange
Location	Luxembourg City, Luxembourg
Founded	2011; 15 years ago
Owner	Robinhood
Key people	Jean-Baptiste Graftieaux (CEO) Nejc Kodrič (co-founder) Damian Merlak (co-founder)
Website	www.bitstamp.net

Bitstamp by Robinhood is a global cryptocurrency exchange founded in 2011 and headquartered in Luxembourg. It provides secure trading via web, mobile, and API platforms for individuals and institutions.¹

It allows trading between fiat currencies and cryptocurrencies, including the U.S. dollar, euro, pound sterling, Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Algorand, Stellar, and USD Coin.²

History

Bitstamp was established as a Europe-focused alternative to the then-dominant Bitcoin exchange, Mt. Gox. ³It trades primarily in U.S. dollars and allows free fiat currency deposits exclusively via the European Union’s Single Euro Payments Area (SEPA), a system facilitating transfers between European bank accounts.⁴

Bitstamp was founded in 2011 by Nejc Kodrič and Damijan Merlak. Starting with minimal capital, two laptops, and a server, the duo launched the exchange in their garage, driven by technological curiosity and a vision for cryptocurrency trading in Europe.⁵ Bitstamp outsourced some of its operations to the United Kingdom since Slovenia lacked sufficient financial and legal services to support the exchange’s activities.⁶

Bitstamp was backed by the United States hedge fund Pantera Capital. In 2016, it became the first nationally regulated Bitcoin exchange in Europe, and received a Luxembourg Payment

Institution license, which enabled EU-wide operations and reinforced security and compliance.7

In 2013, Bitstamp started requiring users to verify their accounts. The organization sent unverified users their last warning in 2026, which required them to complete verification within 28 days or face account termination and loss of all funds.⁸

Furthermore, Bitstamp built its European headquarters in Luxembourg during 2016 as it became the first Bitcoin exchange to obtain full operational licenses throughout Europe after completing two years of regulatory assessment.⁹ Bitstamp introduced Ether trading to its platform in 2017 which enabled users to trade with USD and EUR and BTC pairs while implementing a single fee system and short-term fee exemptions.¹⁰

The Belgian investment company NXMH bought Bitstamp through an all-cash transaction which took place in 2018. Nejc Kodric continued to lead the company as CEO while Pantera Capital and co-founder Damian Merlak sold their shares.¹¹

Pantera Capital sold its minority stake in cryptocurrency exchange Bitstamp to San Francisco-based Ripple in September 2023 with Galaxy Digital serving as the transaction advisor while financial details remained undisclosed.¹² The company stopped its Ethereum staking service because of concerns related to regulatory matters.

Robinhood Markets plans to purchase Bitstamp for $200 million according to a statement they made in 2024. The acquisition was reportedly completed in June ^2025.13

Service Disruptions

Bitstamp stopped all withdrawal operations during February 2014 after attackers executed a distributed denial-of-service attack against the platform. According to Bitcoin Magazine, the attackers demanded a ransom of 75 bitcoins which CEO Nejc Kodrič refused because the company followed its policy of not negotiating with terrorists.¹⁴

Also, it suspended its entire operation during January 2015 after a security breach occurred which affected less than 19000 bitcoins. The company stored most of its reserves in offline cold storage while law enforcement authorities received notification of the situation.¹⁵

Compliance

The New York Attorney General released the Virtual Markets Integrity Initiative Report in September 2018 which examined fourteen virtual currency exchanges to create better security and anti-hacking and business operational transparency.

Bitstamp was one of ten organizations that responded to the survey which included seven companies that had received permission from the New York State Department of Financial Services to conduct business in New York while they committed to safeguarding customer funds and preventing money laundering and handling operational risks.

The exchange maintained its security and transparency through three main methods which included blocking users who accessed via VPNs and providing complete information about their fee structure and conducting audits of their cryptocurrency assets.¹⁶

¹ Bitstamp, “Company Profile: What is Bitstamp by Robinhood?”, Achieved

² Bitstamp, “Company Profile: Buy & trade with ease on the trusted crypto exchange”, Achieved

³ YourStory, “Company Profile: Bitstamp”, Achieved

⁴ YourStory, “Company Profile: Bitstamp”, Achieved

⁵ Medium, “Interview With CryptoCurrency Influencer — Nejc Kodric of Bitstamp”, Achieved, Retrieved January 2018

⁶ Forbes, “The Bitcoin Economy's 'Backbone' Is Bitstamp, An Exchange Run By Two Young Slovenians”, Achieved, Retrieved June 2014

⁷ Medium, “Bitstamp Becomes First Nationally Regulated Bitcoin Exchange :: Blockchain Letter, April 2016”, Achieved, Retrieved April 2016

⁸ SiliconANGLE, “Bitstamp issues final notice for users to verify accounts”, Achieved, Retrieved October 2014

⁹ Silicon Luxembourg, “FinTech Company Bitstamp Chooses Luxembourg As Its European Headquarters”, Achieved, Retrieved April 2016

¹⁰ CoinDesk, “Bitstamp Will Add Ether Trading to Cryptocurrency Exchange”, Achieved, Retrieved September 2021

¹¹ CoinGeek, “Crypto exchange Bitstamp acquired by investment firm in all-cash deal”, Achieved, Retrieved March 2026

¹² Finance Magnates, “Ripple Acquires Undisclosed Stake in Crypto Exchange Bitstamp”, Achieved, Retrieved May 2023

¹³ CNBC, “Robinhood’s $200 million Bitstamp deal takes it beyond retail trading”, Achieved, Retrieved June 2025

¹⁴ TechCrunch, “Bitcoin Exchange Bitstamp Halts Withdrawals Citing Denial Of Service Attack”, Achieved, Retrieved February 2014

¹⁵ Pinsent Masons, “Bitcoin exchange Bitstamp suspends service after security breach”, Achieved, Retrieved January 2015

¹⁶ Attorney General, “The Virtual Markets Integrity Initiative”, Achieved, Retrieved September 2018