30 August 2014

Bitcoin exchange Bitfloor shuts down

18 April 2013  |  7439 views  |  0 Dead end

New York-based bitcoin exchange Bitfloor has been forced to cease all operations indefinitely after being told that its US bank account is being shut down.

In a statement on its Web site, founder Roman Shtylman, says: "Unfortunately, our US bank account is scheduled to be closed and we can no longer provide the same level of USD deposits and withdrawals as we have in the past."

Shtylman insists that he will work "over the next few days" to make sure all users get their money back.

The BitFloor exchange is a relatively small operation; trading just over 159,000 bitcoins in the past 30 days, compared to four million for industry leader Mt. Gox.

The platform drew attention last September when it was forced to temporarily shut down following a heist which allowed hackers to make off with $250,000 in the virtual currency. The thieves managed to steal around 24,000 coins after they "gained accesses to an unencrypted backup of the wallet keys" and used them to transfer the money.

Bitcoin has received widespread media attention in the past weeks as its value shot up from $40 in February to $220 in April. The volatile currency has since dropped in price and is trading at around $90 at the time of writing.

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