Bitcoin bank Flexcoin shuts after theft

Mar 04, 2014
A man talks on a mobile phone in a shop displaying a bitcoin sign in Hong Kong on February 28, 2014

An alleged theft by hackers forced another online business serving bitcoin traders and investors to shut down Tuesday.

Flexcoin, which billed itself as a bank for the virtual, crypto-currency, said someone attacked its systems and stole nearly $600,000 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 to trace the source of the hack."

The closure came just two weeks after the collapse of the Japan-based Mt. Gox, which at one time was the world's largest bitcoin exchange.

Mt. Gox said unknown hackers exploited weaknesses in the computer coding and security that underlies bitcoin and stole some $500 million in worth from it.

Also on Tuesday a small bitcoin exchange, Poloniex, reported a theft, according to statements on an unverified Twitter account and a posting on the widely used Bitcoin Forum.

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Dr_toad
not rated yet Mar 04, 2014
With all the successful digital piracy these days, you'd think the thieves are banksters already.

Watch out or they'll start charging fees to steal from you like the traditional banksters do...
edmeye
not rated yet Mar 06, 2014
This really sucks. I lost a ton in Flexcoin. We have gathered up information about who runs it and put it on pastebin. Just search for it.