Bitcoin is the new bubble in the virtual financial space. The meteoric rise of Bitcoin valuation has lured in investors. tech geeks and crooks to the virtual currency market. The virtual currency market is currently on a rollercoaster ride where the fittest will survive only. The latest example of this is Bitcoin exchange BitFloor’s decision to shut down its operations.
The digital currency exchange has suspended all trading, and plans to return its remaining funds to users. The announcement of closure, penned by its founder Roman Shtylman, came yesterday. It is currently being posted in BitFloor’s home page.
I am sorry to announce that due to circumstances outside of our control BitFloor must cease all trading operations indefinitely. 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. As such, I have made the decision to halt operations and return all funds.
Over the next days we will be working with all clients to ensure that everyone receives their funds. Please be patient as we process your request.
Last September, the exchange was hacked and lost 24,000 BTC (nearly half a million dollar at that time) in the incident to crooks. The exchange temporarily suspended its operations after the incident. Yesterday’s announcement marks the exchange’s final closure.
The announcement came a week after a New York-based startup raised $500,000 in seed funding to launch a Bitcoin trading platform.