updated 08:42 pm EST, Tue March 4, 2014
Third high-profile loss in a week may cause further instability in BitCoin
Yet another Bitcoin exchange has shut down. Flexcoin has shuttered, after disclosing that hackers appropriated 896 Bitcoins from its "hot wallet" on a computer facing the Internet. Customers whose coins were stolen will likely recieve nothing, with a small percentage of users whose coins were in a "cold wallet," not Internet-accessible, have already had their coins reimbursed.
Last week, following the collapse of Mt. Gox, BitPolonix found 12.5 percent of its Bitcoin reserve pilfered. The nature of the Bitcoin protocol doesn't make theft easy, but the nature of the data file and transactions that must take place to make it a currency allows for the thefts to take place.
Flexcoin has stated that it "will attempt to work with law enforcement to trace the source of the hack." Regardless, effective immediately, Flexcoin is shut down.