Flexcoin, a Bitcoin bank that claimed to have solved every problem with Bitcoin, has closed down after a hacker stole some 896 BTC. The value of the cryptocurrency lost is estimated to be about US$620,000 (RM2mil); a loss that Flexcoin is unable to recover.
The identity of the attacker is still unknown, but the stolen Bitcoin has been divided into two addresses. It would appear that the anonymity offered by cryptocurrency is now making it very difficult to discover who is now in possession of the stolen funds.
Fortunately, Bitcoin in ‘cold storage’ with the bank has been left untouched. Cold storage refers to Bitcoin that has been stored offline and are not accessible through the internet; which prevented the hacker from stealing them. Flexcoin has stated that users will be able to retrieve their funds in cold storage after they verify their identity.