BitFloor ceases operations, refunds customers

BitFloor ceases operations, refunds customers

Summary: After citing issues with its US bank account, BitFloor has closed its doors and promised its customers a refund of the virtual currency it holds.

TOPICS: Banking, E-Commerce

Bitcoin exchange BitFloor has closed its doors, citing issues with its US bank account.

Bitcoin founder Roman Shtylman made the announcement, replacing the exchange's website with a message for its customers. He explained that that due to the exchange's US bank account being scheduled for closure, it could "no longer provide the same level of USD deposits and withdrawals as we have in the past".

"As such, I have made the decision to halt operations and return all funds."

Shtylman wrote that he expects all customers to receive their funds over the next few days, but did not provide any further rationale behind the decision.

The value of the Bitcoin on the BitFloor exchange was last reported to have a value of about US$100. In comparison, Bitcoin was trading on the Mt Gox exchange at around the US$90 mark. Both markets touched or exceeded the US$260 mark just several weeks ago, before experiencing a significant decline in value.

In September last year, BitFloor fell victim to an online attack that allowed hackers to steal Bitcoins worth over US$250,000 at the time. The exchange rate at the time of the theft was about US$10.45.

The attack nearly closed BitFloor, but Shytlman managed to reopen the exchange and resume trading.

Topics: Banking, E-Commerce

Michael Lee

About Michael Lee

A Sydney, Australia-based journalist, Michael Lee covers a gamut of news in the technology space including information security, state Government initiatives, and local startups.

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