Bitcoin Bank Flexcoin Closes After Losing All Bitcoins to Hackers

Bitcoin Bank Flexcoin has announced that it is closing itself down after it lost bitcoins worth $600,000 to hackers. Flexcoin has said that all its 896 bitcoins that were stored on internet connected computers had been stolen.

flexcoin-shutsdown

The company has announced that since it does not have the necessary resources to recover from this attack, therefore it is closing for good.

Flexcoin which is based in Alberta, Canada is cooperating with the law enforcement agencies in tracking down who stole these. The company has said that the bitcoins stored offline are safe and will be returned to users.

Earlier one of the biggest bitcoin exchanges had Mt. Gox has filed for bankruptcy after its 850,000 bitcoins were stolen by hackers due to a system fault.

Bitcoin is a digital currency which is traded peer-to-peer without any central control. The currency has seen its value climb exponentially within last year and currently its exchange rate to US dollar is 668.57. So far $7 billion worth of bitcoins have been minted.

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