Bitcoin exchange Cointrader shut down after hacker attack

Canada-based bitcoin exchange Cointrader announced its closure earlier this week, citing what it said was a hacker attack.

According to a notice posted on the service’s website, Cointrader exchange has closed its portal with immediate effect. An unverified email sent to users and on social media claimed that an internal audit revealed that “the lack of Bitcoin in the company’s wallets was the reason for delayed withdrawals.”

Email explanation:

“This issue is currently under investigation and we intend to have your account cleared as quickly as possible. We sincerely apologize for the inconvenience and will continue to post updates on this issue. In the meantime, we have suspended deposits, withdrawals and trading activity until this matter has been resolved.”

The closure came after months of low online trading volume, according to data from market information provider Bitcoin Charts, which showed the exchange had traded just 81.43 BTC (about $33,600) in the past six months.

This incident is not the first trouble the exchange has encountered in its operations. As early as early 2014, Cointrader closed the bank accounts of its customers and businesses due to reasons related to the Bank of Montreal, which was the exchange's original banking partner.

At the time, the move was blamed on the Canadian government’s restrictive policies toward digital currency businesses. BMO continues to support financial blockchain applications through a consortium of banks led by R3cev.

Cointrader and its parent company, Newnote Financial, did not immediately respond to requests for comment.