Flexcoin said in a message posted on its website
that all 896 bitcoins stored online were stolen on Sunday.
"As Flexcoin does not have the resources, assets, or otherwise
to come back from this loss, we are closing our doors
immediately," the company said. (http://r.reuters.com/web47v)
Alberta, Canada-based Flexcoin, which is working with law
enforcement agencies to trace the source of the hack, said it
would return bitcoins stored offline, or in "cold storage", to
Cold storage coins are held in computers not connected to the
Internet and therefore cannot be hacked.
Mt. Gox, once the world's biggest bitcoin exchange, filed for
bankruptcy protection in Japan on Friday, saying it may have
lost some 850,000 bitcoins due to hacking into its faulty
Flexcoin said on February 25 it was not affected by Mt. Gox's
closure. "While the Mt. Gox closure is unfortunate, we at
Flexcoin have not lost anything," it had tweeted.
Bitcoin is a digital currency that, unlike conventional money,
is bought and sold on a peer-to-peer network independent of
central control. Its value soared last year, and the total worth
of bitcoins minted is now about $7 billion.
According to Tuesday's price on Bitstamp, one of the largest
exchanges for trading bitcoins, the crypto-currency was valued
at about $668.57.
(Reporting by Mridhula Raghavan in
Bangalore; editing by Saumyadeb Chakrabarty)
[© 2014 Thomson Reuters. All rights
Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.