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Bitcoin exchange FlexCoin shutters, following theft of $620,000 in BTC

updated 08:42 pm EST, Tue March 4, 2014

Third high-profile loss in a week may cause further instability in BitCoin

Yet another Bitcoin exchange has shut down. Flexcoin has shuttered, after disclosing that hackers appropriated 896 Bitcoins from its "hot wallet" on a computer facing the Internet. Customers whose coins were stolen will likely recieve nothing, with a small percentage of users whose coins were in a "cold wallet," not Internet-accessible, have already had their coins reimbursed.

Last week, following the collapse of Mt. Gox, BitPolonix found 12.5 percent of its Bitcoin reserve pilfered. The nature of the Bitcoin protocol doesn't make theft easy, but the nature of the data file and transactions that must take place to make it a currency allows for the thefts to take place.

Flexcoin has stated that it "will attempt to work with law enforcement to trace the source of the hack." Regardless, effective immediately, Flexcoin is shut down.




by MacNN Staff

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Comments

  1. climacs

    Mac Enthusiast

    Joined: 09-06-01

    Ha. Ha. Ha.

  1. climacs

    Mac Enthusiast

    Joined: 09-06-01

    FDIC-insured bank accounts backed by the big, bad federal government don't look quite so bad now, do they?

  1. robttwo

    Fresh-Faced Recruit

    Joined: 11-15-05

    Nor does the cash in my house backed by a Smith & Wesson.

  1. pairof9s

    Senior User

    Joined: 01-03-08

    The whole BitCoin industry just feels like a great idea that wasn't completely thought out. Granted every technology goes through development pains, but when you're talking about money, no one wants to be "beta testers" for improving BitCoin.

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