Flexcoin Shuts Down After Over $600,000 Of Bitcoins Were Stolen

Bitcoin is a virtual currency which is fast gaining popularity, although recently it seems that there have been several blows dealt to the currency that brings into the question its security and validity. As some of you guys might have heard, one of the largest Bitcoin exchanges, Mt. Gox, recently shut down and filed for bankruptcy.

Now it seems that yet another Bitcoin service is in trouble and has similar shut down as well. The service, Flexcoin, is not as big as Mt. Gox, but it would no doubt be used as ammunition by those against the virtual currency as reasons why it use should be disallowed.

According to Flexcoin, they have recently lost as many as 896 bitcoins to attackers which was worth to be over $600,000. It is because of this recent attack that the service claimed that they will be unable to continue functioning simply because the bitcoins stolen emptied out Flexcoin’s hot wallet.

The good news is that not all the bitcoins were stolen as the offline storage remained untouched. Flexcoin has promised to return those funds to customers as soon as possible. So far we have seen the resistance by several governments with regards to making Bitcoin an accept currency. While the virtual currency can be traded between users, countries such as China have banned the use of Bitcoin amongst banks.

Tyler Lee
Categories: General
Tags: bitcoin