Flexcoin to shut down following a theft of its Bitcoins

MtGox isn't the only one to have been hacked and relieved of its Bitcoins. Flexcoin, which had described itself as the “world’s first bitcoin bank,” closed. It too was hacked and all of the bitcoins it had placed in online storage were stolen.

Posted to its homepage, Flexcoin said it was hacked on March 2nd and was robbed of all its bitcoin held in online storage. The site lost 896 bitcoins, which at todays market was equal to about $600,000.

Flexcoin said it will reimburse its customers using the coins it held in an off line account.

The company said it will shut down because it can’t recuperate from the loss. They will work with the authorities to try to track down the hackers.