Two days after Bitcoin blasted through its all-time price—shooting past $100 per BTC—Instawallet, one of the digital currency's easiest-to-use wallet sites, has shut down indefinitely. Bitcoin’s price peaked at around $140 late Tuesday but has since fallen back down. It’s hovering around $128 at present.

Meanwhile, Mt. Gox, the world’s largest bitcoin-trading site, wrote on Twitter Wednesday afternoon that it’s been experiencing a distributed denial of service (DDoS) attack. “Can confirm we are eating ddos right now, and for some reason Prolexic didn't block it,” the company noted.

Instawallet branded itself as an “anonymous” Bitcoin wallet site. It created a randomly generated account number every time the site was updated. That made it very easy for Bitcoin users to store their online cash, but it also apparently made it easy for hackers to disrupt the system. The problem was first brought to light on Monday.

“The Instawallet service is suspended indefinitely until we are able to develop an alternative architecture,” the service wrote on its site. “Our database was fraudulently accessed, due to the very nature of Instawallet it is impossible to reopen the service as-is.”

Instawallet did not immediately respond to Ars’ request for comment.

The website, which appears to be run from France, said that it will “accept claims for individual Instawallets” and will refund balances under 50 BTC (around $6,400 at current exchange rates).

“Claims for wallets that hold a balance greater than 50 BTC will be processed on a case by case and best efforts basis,” it said.

While there has been some discussion about Bitcoin-based insurance, at present, it does not seem to exist. Perhaps this incident will further the movement for better BTC consumer protection.