Coinwallet Shuts down Its Service Following a Security Breach

CoinWallet.eu Runs a Stress Test on Bitcoin Network – Results Inconclusive

Another bitcoin wallet service bites the dust! Coinwallet.co, the online web-based digital currency wallet application has decided to call it a day. The company made an announcement about its decision to shut down its services recently. This announcement followed an unexpected security breach experienced by the company.

According to Coinwallet, they decided to shut down the services once and for all after they found few issues in the codes while fighting a security breach. The company has reiterated that all the funds belonging to its users are safe and accounted for. All Coinwallet users are urged by the platform to clear the digital currency balance from their respective accounts by the end of this month.

Coinwallet experienced a data breach soon after the well-known cryptocurrency exchange platform announced a temporary suspension of its activities due to a security incident. Coinwallet was taken offline earlier last week on April 7 due to the data breach which might have compromised the user credentials.

The wallet service has announced that it has no intention of continuing further with Coinwallet offering as fixing the new found bugs may not be a feasible option. According to the reports, the main security features on the platform failed to kick in when the intrusion was detected. The initial security failure was compensated by the backup security features that activated to block the breach before any harm was done.

As a precautionary measure, the company has reset all the wallet passwords and revoked the API keys. Even the Twitter Tip Bot, that had been part of the platform has been stopped.

Apart from Coinwallet, many other bitcoin companies have halted their wallet services due to reasons other than security issues. Before Coinwallet, another service provider CoinKite had announced the closure of its services as the company shifted its focus from bitcoin wallets and APIs to enterprise hardware solutions. Coinwallet may also have something like that brewing in their labs.

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