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Flexcoin, a relatively small Bitcoin bank, announced early Tuesday morning that it's shutting its doors in light of being completely robbed of its currency.
Flexcoin, a relatively small Bitcoin bank, announced early Tuesday morning that it's shutting its doors in light of being completely robbed of its currency. All of it. Just days after a massive theft at another major Bitcoin depository, Flexcoin was completely cleaned out by hackers, leaving the site no choice but to shut down.
According to Flexcoin's terms of service, Flexcoin users aren't owed anything: "We have taken every precaution to defend your bitcoins from hackers and/or intruders.," the terms clearly state. "However, Flexcoin Inc is not responsible for insuring any bitcoins stored in the Flexcoin system. You are entering into this agreement with Flexcoin Inc. You agree to not hold Flexcoin Inc, or Flexcoin Inc's stakeholders, or Flexcoin Inc's shareholders liable for any lost bitcoins." The total amount lost is 896 bitcoins, which converts to about $618,000.
Bitcoin users have responded similarly to how they responded to the Mt. Gox collapse — blame the individual site, not concept of Bitcoin itself. One reddit user writes Tuesday morning,
The Mt. Gox collapse, which was much larger in scale, did not turn users away from the digital currency. Bitcoin investors are diehard believers in the idea of an unregulated, worldwide currency.
Sadly, it appears that Flexcoin did not see the theft coming at all — the company assured users after Mt. Gox that the same thing would not happen to them.
Flexcoin, a relatively small Bitcoin bank, announced early Tuesday morning that it's shutting its doors in light of being completely robbed of its currency. All of it. Just days after a massive theft at another major Bitcoin depository, Flexcoin was completely cleaned out by hackers, leaving the site no choice but to shut down.
According to Flexcoin's terms of service, Flexcoin users aren't owed anything: "We have taken every precaution to defend your bitcoins from hackers and/or intruders.," the terms clearly state. "However, Flexcoin Inc is not responsible for insuring any bitcoins stored in the Flexcoin system. You are entering into this agreement with Flexcoin Inc. You agree to not hold Flexcoin Inc, or Flexcoin Inc's stakeholders, or Flexcoin Inc's shareholders liable for any lost bitcoins." The total amount lost is 896 bitcoins, which converts to about $618,000.
Bitcoin users have responded similarly to how they responded to the Mt. Gox collapse — blame the individual site, not concept of Bitcoin itself. One reddit user writes Tuesday morning,
The Mt. Gox collapse, which was much larger in scale, did not turn users away from the digital currency. Bitcoin investors are diehard believers in the idea of an unregulated, worldwide currency.
Sadly, it appears that Flexcoin did not see the theft coming at all — the company assured users after Mt. Gox that the same thing would not happen to them.
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