Flexcoin made the abrupt announcement on its website Tuesday, admitting that it had been robbed of 896 bitcoins after a thief or thieves managed to collect them from Flexcoins servers and transfer them to two bitcoin wallets — a unique string of numbers and letters that function similarly to an email address, and bitcoin’s equivalent to individual bank accounts where customers store money.
At current market rates, the theft amounts to more than $600,000 US. The figure represents the bank’s entire bitcoin holdings online, effectively wiping out any customers who held assets there.
“While the MtGox closure is unfortunate, we at Flexcoin have not lost anything,” Flexcoin said via their twitter account as recently as February 25th.
I wish I could delight in the irony.