Bitcoin bank closes doors after hack

Bitcoin bank Flexcoin has closed its virtual doors with immediate effect following an electronic heist on its “hot wallet” on March 2, 2014.

According to Flexcoin, the hacker made off with 896 BTC (valued at approx $600 000), dividing them into these two addresses:

1NDkevapt4SWYFEmquCDBSf7DLMTNVggdu

1QFcC5JitGwpFKqRDd9QNH3eGN56dCNgy6

Flexcoin said it does not have the resources, assets or otherwise to bounce-back from the attack and has no choice but to close its doors after three years of operation.

Users whose coins were put into “cold storage” will be contacted by the company and asked to verify their identity.  Cold storage bitcoins were unaffected by the attack, Flexicoin said.

Users whose coins were not in cold storage have simply been directed to the company’s Terms of Service at “Flexcoin.com/118.html”.

In an update on March 4, 2014, Flexcoin said the theft was enabled by a flaw within the front-end.

“Having this be the demise of our small company, after the endless hours of work we’ve put in, was never our intent. We’ve failed our customers, our business, and ultimately the Bitcoin community”.

Major bitcoin exchange Japan-based Mt.Gox was also subjected to an electronic heist last week, forcing it to file for backruptcy protection and close its virtual doors (see previous report).

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