CAVIRTEX, a Canadian Bitcoin exchange, has announced that it will be permanently ceasing all operations in March. The exchange cited security breaches as their reason for closing.
CAVIRTEX reported that an older version of their database may have been compromised, giving a possible hacker access to 2 Factor Authentication secrets and hashed passwords. Therefore, in the interest of customer safety, the exchange intends to return all customer funds and cease operations in order to prevent any losses.
“We have maintained 100% reserves. CAVIRTEX is solvent and remains in a position to accommodate all customer withdrawal requests received prior to March 25, 2015. However, On February 15, 2015 we found reason to believe that an older version of our database, including 2FA secrets and hashed passwords, may have been compromised. This database did not include identification documents.
Because security and the safety of customer funds are paramount to our mission and the success of Bitcoin in general, CAVIRTEX has determined to cease active operations in the Bitcoin business and to return all customer funds. We believe that the damage to the company’s reputation caused by the potential compromise will significantly harm our ability to continue to operate successfully.”
The Bitcoin exchange stated that their decision to shut down in no way reflects any changes in their opinion on the future of digital currency, saying that “CAVIRTEX continues to believe, as we have over the last three and a half years of operation, that cryptocurrency is here to stay.”