Bitcoin Bank Flexcoin Shuts Down After Massive Theft

The Bitcoin bank Flexcoin announced that it will be closing its doors after a massive theft of all of its Bitcoins. Hackers made off with 896 Bitcoins, which are valued at around $600,000. This is not the first time this happened just last month Mt. Gox was also hacked for all of their Bitcoins.


Flexcoin was one of the few Bitcoin banks that did offer HTTPS encryption, but I guess that did not make any difference as hackers were able to go in and steal the Bitcoins. Flexcoin stated that they would be shutting down 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.” Flexcoin did mention that they were working with law enforcement to trace the source of the hack.

Flexcoin said that it would not be liable for the theft as it terms of service state that Flexcoin, “is not responsible for insuring any Bitcoins stored in the Flexcoin system.” There is some good news though, Flexcoin did mention that Bitcoins stored in its offline cold storage were still intact and that it would begin contacting users to return their Bitcoins.

Bitcoin theft seems to be happening more and more often. Is Bitcoin doomed?

Source: Flexcoin | News Archive

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