Vircurex Follows MtGox Into Insolvency

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.