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Flexcoin bank loses currency to hackers

The closure of the Flexcoin bank comes just a week after the collapse of Mt. Gox, a major bitcoin exchange.
Published: March 5, 2014
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A bank specializing in bitcoins says it has closed after computer hackers robbed its digital currency. The closure of the Flexcoin bank comes just a week after the collapse of Mt. Gox, a major bitcoin exchange. Mt. Gox also fell to an electronic heist.

The failures of Mt. Gox and Flexcoin will raise more doubts about bitcoin’s use as an alternative currency. Hackers stole 896 bitcoins from Flexcoin’s online vault according to Flexcoin’s website Tuesday. That equals a loss of about $600,000, based on bitcoin’s trading value. Unlike banks for government-backed money, Flexcoin’s losses aren’t covered by insurance. The Alberta, Canada, bank says it can’t recover.

Associated Press