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Bitcoin bank Flexcoin closing its doors after massive theft

Hackers made away with 896 Bitcoins in a massive theft at Flexcoin.

Bitcoin coin

A Bitcoin bank called Flexcoin announced that it would be shutting down after a massive theft in which hackers stole all of the bank’s Bitcoins.

Flexcoin was one of the few Bitcoin entities that offered HTTPS encryption on all transactions, but in the end, it did not make any difference as hackers were able to steal all 896 Bitcoins in its hot wallet. A hot wallet is what an online Bitcoin storage is referred to, and at the time of the theft, Flexcoin’s hot wallet was valued at around $600,000.

Flexcoin stated that it would be closing its doors immediately following the theft. “As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately.” The Canada-based bank did mention that it was working with law enforcement officials to trace the source of the hack, and that any new information would be posted on its Twitter account. However, the bank says that it won’t be liable for the theft, as its terms of service state that Flexcoin “is not responsible for insuring any Bitcoins stored in the Flexcoin system.”

There is a sliver of good news in all of this though. Flexcoin mentioned that all Bitcoins stored in its offline cold storage were still intact and that it would begin contacting users to return their Bitcoins.

Just last week, Flexcoin announced that the Mt. Gox closure did not affect its business in any way by tweeting, “We hold zero coins in other companies, exchanges, etc. While the Mt. Gox closure is unfortunate, we at Flexcoin have not lost anything.”

Source: Flexcoin

Harish Jonnalagadda
Harish Jonnalagadda is an avid reader of science-fiction novels. A long-time Arsenal fan, his other interests include gaming, basketball and making music. He also likes tinkering with hardware in his free time.

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