Vircurex is a Beijing-based Bitcoin and altcoin exchange platform that was founded in October 2011. Transaction fees opened at about 0.5%. Some of the trading features of Vircurex included Buy and Sell orders, Options, Loans, and more. As an operator of numerous altcoins, along with Cryptsy, Vircurex had become a popular exchange for miners. As many miners tend to rotate their mining power towards the latest most profitable currencies, exchanges like Vircurex offer a solution for efficient transfer of altcoins into either bitcoins or fiat currency.
However, Vircurex has had instances of security breaks that have led to the theft of bitcoins. As a result, during March 2014, Vircurex froze withdrawals as it announced it no longer had enough available funds to pay accounts holders.
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In order to stay in business, Vircurex outlined a payment plan that involved distributing its remaining crypto currency balances to depositors. Depositors’ accounts would be labeled “frozen balance.” “Funds in this balance type cannot be used to trade or withdraw,” Vircurex said. “Those are the balances that the exchange will gradually pay back and hence transfer back to the available balance over time. The freezing of the balances is a one-time action, it does not affect future deposits in any ways.”
Vircurex was plagued by two major hacking incidents in recent times, though they had pledged to cover its users’ losses via its own income. The company hoped that by using its own funds, users would re-gain confidence in the company and positive cash flow would give them a boost, eventually restoring its financial standing and reliability. However, the future of Vircurex remains unclear as it is unknown whether exsting customers will remain using the exchange once full withdrawals become available.