After the collapse of Mt. Gox, now Canada-based virtual currency exchange Flexcoin has been forced to close down.
Flexcoin said flaws in its software code enabled hackers to make off with bitcoins worth around 440,000 euros.
“As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately,” it said in a statement.
A message posted on its website explained that the attack had exploited a flaw in its code on transfers between users and involved inundating the system with simultaneous requests to move coins between accounts.
“Flexcoin has made every attempt to keep our servers as secure as possible, including regular testing,” it said, adding it had repelled thousands of attacks over the past few years. “But in the end, this was simply not enough.”
The firm said it is working with law enforcement agencies to trace the source of the hack.
Not all has been lost; it will return to owners bitcoins that were held in computers not connected to the internet and which could not be raided.
Mt. Gox, once the world’s dominant bitcoin exchange, also blamed hacking for its losses. It has filed for bankruptcy protection in Japan and said it may have lost some 850,000 bitcoins due to hacking.
One bitcoin was valued at about $658 (480 euros) on Wednesday, according to Bitstamp, one of the largest exchanges for trading bitcoins.
Japan looks at bitcoin regulation
Japan will this week set out rules on how to handle bitcoins. It is the first sign that the government is taking action on regulating the virtual currency after the collapse last week of Tokyo-based Mt. Gox.
The cabinet will decide on Friday how to treat bitcoins under existing laws, people familiar with the matter told Reuters.
The sources said banks and securities firms will not be able to handle bitcoin as part of their main business, suggesting the virtual currency will be treated more as a commodity, like gold.
Japan has struggled to define its approach to bitcoin since the collapse of Mt. Gox.
The authorities there are also looking at possibly taxing bitcoin transactions, but it remains unclear how they could do this, given that one of the attractions of using bitcoin is that transactions are largely anonymous.
‘Consumer protection legislations needed’
“We haven’t yet thoroughly grasped the situation, but some kind of regulation is needed from the perspective of consumer protection, and we will also discuss (bitcoin) from the perspective of imposing an asset tax,” said Takuya Hirai, head of an IT panel in the ruling Liberal Democratic Party.
The panel heard on Wednesday from consultant Deloitte about bitcoin and from officials of the Consumer Affairs Agency, the Financial Services Agency (FSA) the Finance Ministry, central bank, Cabinet Office and the National Police Agency about the Mt. Gox collapse, Hirai told reporters.
The FSA and the Finance Ministry have said bitcoin is not a currency and doesn’t fall under their purview, while the Bank of Japan has said it was studying the bitcoin phenomenon with interest.
Hiroshi Mikitani, a prominent Japanese e-commerce billionaire and CEO of Rakuten Inc, expressed caution about trying to regulate the virtual currency. “They should not act hastily,” he said, according to Kyodo News. “As for whether we need regulations, they should first examine the situation a bit more and discuss it in depth.”
Copyright © 2015 euronewsMore about:
- 1Business Line: Greek election aftermath, Russia’s rating cut and bad news from Microsoft
- 2EU macro regions – a way to resolve issues with your neighbours?
- 3Russia unveils anti-crisis plan to save banks, but light on details
- 4US Federal Reserve remains ‘patient’ on interest rate hike timetable
- 5Markets mostly not fazed by S&P’s downgrading of Russia’s credit rating to junk level
- 1EU macro regions – a way to resolve issues with your neighbours?
- 2Russia unveils anti-crisis plan to save banks, but light on details
- 3Markets mostly not fazed by S&P’s downgrading of Russia’s credit rating to junk level
- 4Greek shares slump further as financial markets fret over new government’s anti-austerity pledges
- 5Turkey eyes further interest rate cut if January inflation falls
- 1So what exactly is quantitative easing, and how is it going to get the eurozone growing again?
- 2Business Line: the best performing EU economy, Davos costs and why Google Glass died
- 3Eurogroup leaves door open for Syriza to partially renegotiate ‘if necessary’
- 4European Central Bank unveils massive stimulus to goose up eurozone growth and inflation
- 5Ebola, poverty and inequality pleas at World Economic Forum in the name of good business
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2The power of the pen: Cartoonists worldwide react to the Charlie Hebdo attack | euronews, world news
- 3Immigration, racism in sport and the rise of extremism – Cantona shares his views | euronews, interview
- 4[LIVE] 12 dead after gun attack at French satirical weekly Charlie Hebdo | euronews, world news
- 5[LIVE NOW] Massive unity rally in Paris, with similar marches in other French cities | euronews, world news
- 6Muslim groups fear backlash after terrorist attacks in Paris | euronews, news
- 7[LIVE] Confusion over reports two killed in Paris shootout, as police close in on Charlie Hebdo suspects | euronews, world news
- 8“ISIL is the baby of George W Bush” | euronews, news
- 9Medieval Bruges is to get its own underground beer pipeline | euronews, world news
- 10Almost four million turn out for unity rallies across France | euronews, world news
- 11International breaking news | euronews online world breaking news in video
- 12NewsWires : euronews : the latest international news as video on demand
- 13A defiant Charlie Hebdo: it’s not the front page the terrorists would’ve wanted | euronews, world news
- 14Key questions around the Charlie Hebdo killings go unanswered | euronews, world news
- 15Getting to know Sir Tony and “the world’s greatest tenor” | euronews, musica
- 16HarperCollins wipes Israel off the map | euronews, world news
- 17euronews apps : iPhone, iPad, Android, Windows Phone 8, Windows 8, Nokia S40, Nokia Asha, Smart TV and Google Glass
- 18eurovibes - a selection of Europe’s best music talent
- 19Grim task of retrieving bodies after wreckage of missing AirAsia plane found | euronews, world news
- 20Charlie Hebdo: Israeli paper deletes women from Paris march | euronews, world news
Wires > Business
- 11:07 CET Apple takes top gifting spot in China – report
- 10:58 CET Oil holds above $48 a barrel after U.S. stocks hit record high
- 10:57 CET Greek bank shares edge back up off record lows
- 10:51 CET AstraZeneca bets on ‘genetic scissors’ for range of new drugs
- 10:48 CET UK’s Argos to open digital stores in Sainsbury’s supermarkets
- 10:46 CET Lending in euro zone falls in December but at slower pace
- 10:41 CET FTSE hits one-week low, Royal Dutch Shell weighs
- 10:38 CET ECB’s Praet sees some ‘rather positive signs’ in money supply data