31 July 2016
Find out more

Virtual currency exchange Vircurex freezes customer accounts

24 March 2014  |  3989 views  |  1 bitcoins

Beijing-based virtual currency exchange Vircurex has frozen customer accounts because it does not have the reserves to cover withdrawal requests.

In a statement on its site the exchange says that it has stopped all bitcoin, litecoin, terracoin and feathercoin withdrawals and is freezing accounts.

Vircurex lost "significant" amounts of these currencies in two hacks last year. Since then the firm has been using the funds in its cold wallet to keep the platform going and gradually refill the wallets of customers who lost out.

However, over the last few weeks several large withdrawals have been made "which have lead [sic] to a complete depletion of our cold wallet balance".

Vircurex says that is now freezing accounts and resetting balances to zero, but is promising to take its profit each month and gradually top up the frozen wallets.

The exchange's troubles come a month after Mt. Gox was forced to shut its doors after losing customer bitcoins worth hundreds of millions of dollars.

Comments: (1)

Alexander Peschkoff
Alexander Peschkoff - TEDIPAY - London | 24 March, 2014, 10:35

With Mt. Gox, everyone blaimed them, and not BTC architecture, as for the security breach (and other BTC-related woes).

I guess the same people will be pointing the same fingers to Vircurex too...

IMO, it is looks like "fish" and smells like "fish", it IS "fish"... As I said before, any takers for "open source" pilots or surgeons?..

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Singapore to tackle money laundering risks in bitcoin transactions

Singapore to tackle money laundering risks in bitcoin transactions

13 March 2014  |  4651 views  |  0 comments | 5 tweets | 3 linkedin
New York regulator starts accepting bitcoin exchange applications

New York regulator starts accepting bitcoin exchange applications

12 March 2014  |  8272 views  |  0 comments | 6 tweets | 4 linkedin
MT Gox goes up in smoke. Is this the end for bitcoin?

MT Gox goes up in smoke. Is this the end for bitcoin?

25 February 2014  |  6684 views  |  5 comments | 15 tweets | 10 linkedin
US state regulators investigate virtual currencies; Mt. Gox chief quits Bitcoin Foundation

US state regulators investigate virtual currencies; Mt. Gox chief quits Bitcoin Foundation

24 February 2014  |  6092 views  |  1 comments | 7 tweets | 6 linkedin
Bitcoin exchange Bitfloor shuts down

Bitcoin exchange Bitfloor shuts down

18 April 2013  |  8354 views  |  0 comments | 13 tweets | 5 linkedin
Bitfloor exchange shuts down after $250,000 heist

Bitfloor exchange shuts down after $250,000 heist

05 September 2012  |  5218 views  |  0 comments
Bitcoin exchange loses $90,000 in virtual currency hack

Bitcoin exchange loses $90,000 in virtual currency hack

14 May 2012  |  8821 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comVisit www.abe-eba.euVisit VocaLink.com

Top topics

Most viewed Most shared
Groupe BPCE agrees to buy FidorGroupe BPCE agrees to buy Fidor
8751 views comments | 38 tweets | 56 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
7247 views comments | 16 tweets | 22 linkedin
hands typing furiouslyManaging Big Data After Brexit
6938 views 0 | 6 tweets | 8 linkedin
hands typing furiouslyWhat is FinTech and where does it Live?
6125 views 0 | 14 tweets | 4 linkedin

Featured job

Find your next job