1 of 1 2 of 1

Canada's largest Bitcoin exchange by volume is closing its doors due to a possible security breach.

Calgary-based Cavirtex announced today (February 17) it will halt trading on March 20 and stop processing withdrawals on March 25.

On its website, the company states:

On February 15, 2015 we found reason to believe that an older version of our database, including 2FA secrets and hashed passwords, may have been compromised. This database did not include identification documents. Because security and the safety of customer funds are paramount to our mission and the success of Bitcoin in general, CAVIRTEX has determined to cease active operations in the Bitcoin business and to return all customer funds. We believe that the damage to the company's reputation caused by the potential compromise will significantly harm our ability to continue to operate successfully.

Despite its troubles, Cavirtex claims it is "solvent" and will be able to return its customers' funds.

Cavirtex is just the latest in a long line of Bitcoin exchanges that have folded.

Still, the company states: "CAVIRTEX continues to believe, as we have over the last three and a half years of operation, that cryptocurrency is here to stay".

Last fall, Cavirtex installed a Bitcoin ATM in the Gateway Newstands store at Pacific Central Station.