Data Breach Forces Bitcoin Exchange Cavirtex to Shutter

Canadian bitcoin trading firm Cavirtex will close down in March following the compromise of sensitive security information, including password hashes and two-factor authentication secrets.

Client funds were unaffected during the incident. But given the ongoing security risks, customer balances are in danger of being stolen, Cavirtex vice president Kyle Kemper said.

Customers have been asked to alter account information on the website, including passwords, and to re-enter withdrawal balances. The company also is advising users to clear all site cookies.

Cavirtex said in a statement:

"As a precaution we have cleared all return sending addresses for all accounts.  If the return address is pre filled or incorrect the account has been compromised and you need to contact us by submitting a ticket. Secondly, browser authentication tokens have been reset so we are leveraging the authenticity of your email account to authenticate users. Finally, we are encouraging people once logged in to change their passwords to further safeguard their accounts...To our knowledge, our production environment has never been breached."

The company announced the closure in a Feb. 17 post on its website.