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Canadian Bitcoin Exchange CAVIRTEX Ceases Business Operations

Avatar Yashu Gola 5 years ago

Canadian Bitcoin exchange CAVIRTEX announced to freeze its trading operations, citing security concerns.

Cavirtex, bitcoin exchange

According to the company’s Feb 17th blogpost, their older database, which included details related to 2FA secrets and hashed passwords, was breached recently. Following the incident, CAVIRTEX froze active trading operations on its platform and decided to reimburse all customers’ funds. The aim was to fall bravely, rather than stand shamelessly.

“We believe that the damage to the company’s reputation caused by the potential compromise will significantly harm our ability to continue to operate successfully,” explained CAVIRTEX.

CAVIRTEX Banking Partners Also Responsible

In a separate conversation with another media channel, CAVIRTEX also blamed its banking partner to be one of the reasons behind the shutdown. CAVIRTEX Vice President Kyle Kemper admitted that the exchange found it difficult to conduct businesses with banks because of an uncertain regulatory environment for Bitcoin businesses. The constant exposure to cryptocurrency-related risks kept them in a red zone for most of the Canadian banks.

CAVIRTEX has decided to discontinue its trading services by March 20th, while the withdrawal process will continue until March 25th. The exchange will continue to address account holders with positive balances even after the aforesaid deadline.

Third Bitcoin Exchange to Go Down in Two Months

The new year hasn’t been much great for Bitcoin exchanges in particular. At the start of previous month, popular Canadian exchange Vault of Satoshi decided to shutdown to pursue better business opportunities. The same statement was given by UK Bitcoin exchange Netagio, which decided to lockout recently amid low profit turnouts and unfavorable business conditions in Europe’s financial capital.

Bitcoin exchanges are dropping like flies, as if some sort of plague has hit the market. It is a moment to introspect, indeed.


Image from Cavitrex

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN...

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