CoinWallet.co, an online wallet service supporting several cryptocurrencies, has announced the shutdown of its services following a data breach, with no plans to resume its operations.



On April 7, CoinWallet tweeted, “We are investigating a security incident. Please be patient while we assess the situation. All coins are safe!”



And soon after, it announced the closure. The team assures that all the coins are safe and is asking its users to withdraw all coins before the 1st of May 2016.



In addition to the data breach, CoinWallet says that there are several reasons behind its decision. It said that there was a small error in a part of its code that was supposed to check user input, but was not functioning properly.



“Checks were in place but the check was then subsequently not used to block the database call”, it added. “Our backup security system kicked in as it was designed to and no coins were lost. We have since patched the vulnerability but are still trying to determine the extent of the breach”.



CoinWallet recommends users to change passwords on any other crypto-related websites where they have used the same password and username as coinwallet.co. It added that all passwords have been reset, all API keys have been deleted and Twitter Tip Bot has been halted.



“This incident prompted us to reassess the viability of running coinwallet.co and it was decided it is just not viable taking into consideration the risk, costs and time involved,” CoinWallet said.



It added that as large number of transactions is expected to take place over the next few days, there might be some delays in processing some transactions. CoinWallet assures users that it will process all transactions as quickly as possible and ensure all outstanding transactions are processed before its closure.



In a separate incident, Cryptocurrency exchange platform ShapeShift.io also suffered a data breach and is expected to remain offline for at least 2 days.