Three in a row : Canada’s Largest Bitcoin exchange Cavirtex goes bust after hacking attack
Bitcoins are a real iron hot commodity not for the exchanges, but for news websites because of the rate at which they are shutting down in 2015. After the the MyCoin from Hong Kong and BTER from China being in news for hacking and closures, now Canada’s top Bitcoin exchange by volume is shutting its business due to a possible security breach.
Calgary-based Cavirtex announced on February 17th that it will halt trading on March 20 and stop processing withdrawals on March 25.
On its website, the company states:
“On February 15, 2015 we found reason to believe that an older version of our database, including 2FA secrets and hashed passwords, may have been compromised. This database did not include identification documents. Because security and the safety of customer funds are paramount to our mission and the success of Bitcoin in general, CAVIRTEX has determined to cease active operations in the Bitcoin business and to return all customer funds. 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.”
Cavirtex has stated that it has enough funds to return the bitcoins/its equivalent to its customers despite the hack attack.
The company however exuded confidence in Bitcoins and their future as worlds top cryptocurrency and states: “CAVIRTEX continues to believe, as we have over the last three and a half years of operation, that cryptocurrency is here to stay”.
Cavirtex story is a classic one from rags to riches to bust. Only last fall, Cavirtex installed a Bitcoin ATM in the Gateway Newstands store at Pacific Central Station which had become headline news among news and Bitcoin websites.