US Bitcoin exchange BitFloor shuts down again

Founder Roman Shtylman said the exchange will be shut 'indefinitely'

The largest Bitcoin exchange in the US, BitFloor, has closed again, this time due to issues with its bank account, according to its founder.

Roman Shtylman wrote that the exchange's "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," he wrote, adding that over the next few days he will work to refund deposits but that people should be patient. The exchange will be shut "indefinitely. . Efforts to reach Shtylman were not immediately successful.

Shtylman told IDG News Service last week that his exchange, which lets people buy the virtual currency, experienced technical problems and saw its highest trading volumes and number of users ever.

The price of bitcoins surged to $US266 on April 10. However, ongoing cyberattacks and technical problems with the largest Bitcoin exchange, Mt. Gox in Tokyo, shook confidence in the fledgling currency, driving its price down to around $US100. Bitcoin has seen continued volatility this week, dropping as low as $US50 per bitcoin.

While Bitcoin's surges and falls may have benefited some speculators, it is likely to have posed challenges for entrepreneurs trying to craft businesses centered around the currency, which can be transferred for free around the world using peer-to-peer software.

BitFloor lost about $US250,000 in September 2012 after hackers breached its network and stole around 24,000 bitcoins. Shtylman said at the time BitFloor did not have enough funds on hand to cover the losses, but he promised to revive the exchange with the intent of repaying victims.

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internete-commerceInternet-based applications and servicesBitFloor

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?