Another $600K hit for bitcoins

Another $600K hit for bitcoins

Another $600K hit for bitcoins The credibility of the popular digital currency, bitcoin, has taken another hit with the shutdown of Canadian-based Flexcoin, after it lost about $600,000 to a hacker attack.

The Alberta-based company said that 896 bitcoins, stored on its website, were stolen Sunday, and that it would be closing its doors since there are no “resources, assets or otherwise to come back from this loss."

Despite claiming it has “made every attempt” to keep its servers secure including regular testing and warding off thousands of other attacks – Flexcoin says the hackers took advantage of a software code glitch, which enabled them to move digital coins between accounts through simultaneous requests. “But in the end, this was simply not enough,” a statement read.

The company is working with police to trace the source of the attack, and says bitcoins stored offline, or in ‘cold storage’ (in computers that are not connected to the Internet and therefore cannot be hacked), will be returned to users.

Flexcoin’s collapse comes just one week after Mt. Gox – one of the world’s largest bitcoin exchanges – filed for bankruptcy protection in Japan, claiming it had lost about 850,000 bitcoins due to hacking. Flexcoin claimed on Feb. 25 it was not affected by the news from Mt. Gox.

On Wednesday, a bitcoin was valued at $658, by global bitcoin trader, Bitstamp. In 2013, the total worth of bitcoins was estimated at $7 billion.

What would you say to a client considering investing in this digital currency? Tell WP your thoughts in the comment box below.

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1 Comments
  • Bob T 2014-03-06 1:02:46 PM
    Simple. If you can't understand it or explain it to your mother then you shouldn't invest. Aside from that if you think you understand it then you probably don't have a clue.
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