After last year’s meteoric rise to prominence, cryptocurrency Bitcoin seemed to be unstoppable, but a spate of cyber-attacks and thefts has caused serious damage to a number of related companies. The latest company to fold after losing Bitcoin to hackers is bank service Flexicoin.
Only one week after popular Bitcoin exchange Mt. Gox filed for bankruptcy, Flexicoin has also announced that it would be closing its doors for good following a massive attack. According to reports, hackers succeeded in breaking past Flexicoin’s digital defenses and steal all the Bitcoins stored on its servers. The attack resulted in the loss of 896 Bitcoins, which is currently equivalent to around $580,000 according to the cryptocurrency’s trading value.
In a statement regarding the decision to shut down the service, Flexicoin stated that the company did not have “the resources, assets, or otherwise to come back from this loss.” Luckily for some users, only Bitcoins stored in Flexicoin’s system were stolen. Less luckily for others, Flexicoin’s Terms of Service states that the company is not responsible for insuring Bitcoins stored on its system, meaning no one who lost their currency will see a penny of it again.