UPDATED 06:30 EDT / APRIL 18 2013

NEWS

BitFloor Exchange Bites The Dust

The rollercoaster ride that is Bitcoin has finally come to an end – or at least, it has for one popular US-based exchange.

BitFloor, which has had a history of troubles since its launch, has announced it’s shutting up shop for good, this time due to undisclosed problems with its bank. In a terse statement posted onto its site, founder Roman Shtylman wrote that BitFloor’s “US bank account is scheduled to be closed and we can no longer provide the same level of USD deposits and withdrawals as we have in the past.”

Shtylman adds that he’s therefore decided to cease trading “indefinitely” and return all funds deposited with the exchange to its customers. He adds that people will need to be patient while he processes their refund requests.

BitFloor’s announcement comes just one week after Shtylman revealed to the IDG news Service that it was experiencing “technical problems” after accumulating record numbers of new users and seeing its hightest ever trading volumes. This came about after the price of Bitcoin soared to its highest ever level, trading at a peak of $266 on April 10. However, the Bitcoin bubble didn’t last all that long, with a combination of ongoing technical problems with major exchanges and numerous DDoS attacks against them shaking confidence in the cryptocurrency. Bitcoin’s value promptly crashed and burned all the way back down to near $50 per Bitcoin, before bouncing back. As of this week, the volatility stiill hasn’t subsided, with Bitcoin currently trading around $90.

Bitcoin’s ups and downs have undoubtedly benefited some speculators, but at the same time they have caused numerous challenges for those whose business revolves around it. Last week, the world’s biggest exchange MT Gox also had to shut down for a 24-hour period after seeing record tradng volumes and thousands of new users sign up.

As for those who have funds stored with BitFloor, there’s probably no reason to worry about not getting their money returned. BitFloor suffered a hack back in September last year, losing around 24,000 Bitcoins (appoximately $250,000 at the time), forcing it to close down for several weeks, however the exchange did eventualy return all of the lost funds to its customers.


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