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Another Canadian Bitcoin Exchange Set to Close Shop: CAVIRTEX Says Latest Security Breach Last Straw

by Leon Pick
    Another Canadian Bitcoin Exchange Set to Close Shop: CAVIRTEX Says Latest Security Breach Last Straw
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    CAVIRTEX is the second Bitcoin Exchange in Canada to announce its closure in as many months following the latest security incident.

    The exchange claims to have been the constant target of hackers, which in the most recent incident, are said to have compromised an old version of a database containing 2-factor authentication (2FA) secrets and hashed passwords. Not included were identification documents.

    The exchange says that no client funds have ever been lost and it has maintained 100% reserves. Clients are asked to withdraw funds from their accounts by March 25. Deposits have been halted effective immediately, and all trading will cease on March 20.

    Clients are also asked to log into their accounts, change their credentials and clear browser cookies. Bitcoin and litecoin withdrawals are temporarily disabled as a security precaution.

    CAVIRTEX said that it is ceasing operations due to the security risks it continuously encounters. "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," it explained.

    The closure comes despite CAVIRTEX apparently investing further into the crypto economy with its launch of several bitcoin ATMs throughout the country.

    Last month, Vault of Satoshi--a Canadian exchange which placed a huge emphasis on security--also announced its closure, citing a new focus on a non-crypto related project.

    The closures leave CoinTrader as one of the last major exchanges left in the country. It is trying to snap up market share left behind by its peers, recently announcing the addition of CAD-based trading.

    CAVIRTEX is the second Bitcoin Exchange in Canada to announce its closure in as many months following the latest security incident.

    The exchange claims to have been the constant target of hackers, which in the most recent incident, are said to have compromised an old version of a database containing 2-factor authentication (2FA) secrets and hashed passwords. Not included were identification documents.

    The exchange says that no client funds have ever been lost and it has maintained 100% reserves. Clients are asked to withdraw funds from their accounts by March 25. Deposits have been halted effective immediately, and all trading will cease on March 20.

    Clients are also asked to log into their accounts, change their credentials and clear browser cookies. Bitcoin and litecoin withdrawals are temporarily disabled as a security precaution.

    CAVIRTEX said that it is ceasing operations due to the security risks it continuously encounters. "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," it explained.

    The closure comes despite CAVIRTEX apparently investing further into the crypto economy with its launch of several bitcoin ATMs throughout the country.

    Last month, Vault of Satoshi--a Canadian exchange which placed a huge emphasis on security--also announced its closure, citing a new focus on a non-crypto related project.

    The closures leave CoinTrader as one of the last major exchanges left in the country. It is trying to snap up market share left behind by its peers, recently announcing the addition of CAD-based trading.

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