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Bitcoin bank Flexcoin shuts after theft by hackers

Published on Mar 5, 2014 6:08 AM
 
An alleged theft by hackers forced another online business serving bitcoin traders and investors to shut down on March 4, 2014. -- FILE PHOTO: AFP

WASHINGTON (AFP) - An alleged theft by hackers forced another online business serving bitcoin traders and investors to shut down on Tuesday.

Flexcoin, which billed itself as a bank for the virtual, crypto-currency, said someone attacked its systems and stole nearly US$600,000 (S$761,112) worth of bitcoin.

"On March 2nd 2014 Flexcoin was attacked and robbed of all coins in the hot wallet. The attacker made off with 896 BTC," the company posted on its website.

"As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately." The company, which took deposits of bitcoin but was not regulated, insured or guaranteed like regular banks, said it would return bitcoins to verified customers who put them in its "cold storage." The company, located in Alberta, Canada, said it "will attempt to work with law enforcement to trace the source of the hack." The closure came just two weeks after the collapse of the Japan-based Mt.

 
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