Heard of Flexcoin? Neither have we. But an alleged theft on March 2nd at this self-described ‘bitcoin bank’ has sparked conversation in the bitcoin community on Tuesday.
All told, about 896 BTC (worth over $600,000 USD) is gone, according to a statement published on the website’s homepage.
The company claims to be the first bitcoin bank, a supposed ‘safe’ place for the store of wealth, which many are learning first-hand is not the case.
The theft has damaged Flexcoin’s operations, and the service will be closing right away:
“As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately.”
Flexcoin says they will be working with users who had bitcoin in cold storage (which was not affected by the attack) in order to return funds:
Users who put their coins into cold storage will be contacted by Flexcoin and asked to verify their identity. Once identified, cold storage coins will be transferred out free of charge. Cold storage coins were held offline and not within reach of the attacker.
The service says they will “attempt” to work with authorities to trace the source of the attack.