Bitcoin Community Taking Heavy Hits

With the Bitcoin community still trying to sort out the effects of the recent shut down of Bitcoin Savings & Trust, it looks as though a new hack attack has hit Bitcoin exchange, Bitfloor, for $240k as their servers were compromised.

Bitcoin Savings and Trust shut down recently with little more than the following announcement from the ‘founder’: “The decision was based on the general size and overall time required to manage the transactions. As the fund grew there were larger and larger coin movements which put strain on my reserve accounts and ultimately caused delays on withdraws and the inability to fund orders within my system. On the 14th I made a final attempt to relieve pressure off the system by reducing the rates I offered for deposits. In a perfect world this would allow me to hold more coins in reserve outside the system, but instead it only exponentially increased the amount of withdrawals overnight causing mass panic from many of my lenders.”

In an open letter issued by the owner of Bitfloor, the company announced that operations have been shut down while the damage is fully assessed. The future of the operation is still being reviewed.

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