Vircurex Follows MtGox Into Insolvency
Virtual currency exchange Vircurex says large fund withdrawals over the past several weeks have led to a "complete depletion" of funds.
Today, the Beijing-based virtual currency exchange Vircurex has stopped withdrawals of Bitcoin, Litecoin and other coins, and will freeze existing user accounts due to serious financial problems. The Next Web reports:
Vircurex was hacked twice last year and had been using a reserve of ‘cold storage‘ currency to reimburse users whose balances were affected by the hacks. However, “large fund withdrawals in the last weeks… have lead to a complete depletion” of the reserves, the company says, meaning that it doesn’t have the funds to pay back affected users.
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