Cavirtex Shuts Down Operations amidst Fear of of Possible Security Breach

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Cavirtex Shuts Down Operations amidst Fear of of Possible Security Breach

The official website has the message that effective immediately; Cavirtex intends to cease carrying on an active Bitcoin business and will be winding down its operations in an orderly manner. The Bitcoin exchange says that as a result, effective immediately, no new deposits will be accepted by the company.

The Bitcoin exchange further clears that trading will be halted effective March 20, 2015 and effective March 25th, 2015, no withdrawals will be processed. Nonetheless, the organization also informed the users that it will communicate with any account holders that continue to hold balances after March 25, 2015.

The decision has come amidst the fear that the Bitcoin exchange is facing security threat. The notice says, “We have maintained 100% reserves and the company is solvent and remains in a position to accommodate all customer withdrawal requests received prior to March 25, 2015.”

It further says that on February 15, 2015 it found reason to believe that an older version of its database, including 2FA secrets and hashed passwords, may have been compromised. Though this database did not include identification documents, the company believes that as security and the safety of customer funds are paramount to its mission and the success of Bitcoin.

Therefore, the Bitcoin exchange has determined to cease active operations in the Bitcoin business and to return all customer funds. The notice says, “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.”

Every Customer Will Get Back his Deposited Amount

Nonetheless, Cavirtex is Canada’s largest Bitcoin exchange by volume and the closing down of its doors due to a possible security breach has surprised many. The Calgary-based Bitcoin exchange has been running quite professionally and even now it claims that it is solvent and will be able to return its customers’ funds.

The Bitcoin exchange requests the fellow customers to fill in their Bitcoin and Litecoin return addresses on their user preferences. It says that these fields have been cleared for all users and will need to be filled in once again. Nonetheless, as this page is accessible under Settings then User Preferences, users can just let the company know their addresses to get their money.

Cavirtex promises that customers’ BTC and LTC will be sent to the addresses given to it. The Bitcoin exchange has appreciated all the support from its amazing customers who have been on this journey with it.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com