Bitfloor Back in Business

Bitfloor, the fourth largest exchange dealing in US dollars, has just announced[1]that it has been hacked, and the service has taken a loss of 24,000 BTC, worth about $250,000 at the time of the theft. As Roman Shtylman, the founder of Bitfloor, describes it, "last night, a few of our servers were compromised. As a result, the attacker gained accesses to an unencrypted backup of the wallet keys (the actual keys live in an encrypted area). Using these keys they were able to transfer the coins. This attack took the vast majority of the coins BitFloor was holding on hand." As a result,....

BitFloor and Bitcoinica Refunds Showing Signs of Progress. The Bitcoin exchange platforms BitFloor and Bitcoinica, the two largest institutional victims ofdigital theft in Bitcoin history, have finally shown their first signs of genuine progress toward repaying their clients. On October 31, a court filing made by Tihan Sealein August to place Bitcoinica into a formal state ofreceivership for liquidation finally came before a judge, and Anthony John McCullagh and Stephen Mark Lawrence were appointed as liquidators. Three weeks later, the liquidators sent emails to select members of the....

The fourth largest Bitcoin exchange in the world, BitFloor, has announced that it is closing its doors, and will soon be refunding deposits to customers. The announcement has nothing to do with recent technical problems that all exchanges have been facing for the past week to due the sudden massive increase in trade volume; rather, the root cause behind the shutdown is the closure of BitFloor's US bank account. Founder Roman Shtylman writes: I am sorry to announce that due to circumstances outside of our control BitFloor must cease all trading operations indefinitely. Unfortunately, our US....

Bitfloor, the bitcoin exchange which closed in April, has begun to enable customer withdrawals. It announced, via Twitter, that instructions had been posted to its website. As users log in, they will find instructions on recovering their funds on the withdraw page. We reported on the closure in April, when it had come to light that Bitfloor's US bank account had been closed. Its bank issued a check for the balance of the account, which left the company with the task of setting up a new account and dealing with distributing the funds back to all of its users. The front page of Bitfloor now....

Alternative bitcoin exchange Bitfloor shocked users last week by announcing it was shutting its doors. The exchange said that its US bank account was closing, and it wouldn't be able to handle the same volumes as it was used to. "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," Bitfloor founder Roman Shtylman wrote in a statement on the website. "As such, I have made the decision to halt operations and return all funds." The site promised to work with all clients to return any....