CoinWallet Suffers Data Breach, Shuts Down All Bitcoin Services

CoinWallet, which provided online bitcoin and multicoin wallet services, has announced that it will shut down its services. On April 6, 2016, the company suffered a data breach and finally issued a closure announcement.

Although the extent of the breach has yet to be determined, the incident led CoinWallet management to conclude that recovery and adjustment costs were not feasible, thus shutting down all services.

The announcement did not indicate that the service might be restored at a later time.

The blog post revealed that a minor error in the code was confirmed to be the cause of the Bitcoin service provider’s failure.

“Despite our best efforts, a small error occurred in a part of our code that should have been detected,” CoinWallet explained.

Finally, the leak did not cause financial loss, as the backup security infrastructure ensured the system worked. The vulnerability has been patched, although the extent of the leak is still determined by the wallet business.

However, it is worth noting that the announcement calls on users to change passwords for other websites and crypto-related domains if their usernames and passwords have been shared. Despite the additional security of CoinWallet, users' passwords may still be compromised.