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April 9, 2015

Hacked bitcoin exchange bought for $2m

Purchase follows a month after hashed password data was breached.

By Jimmy Nicholls

A bitcoin exchange that was shut down in March following a security breach has reopened after being bought by a competitor.

The Canadian Virtual Exchange (Cavirtex) began trading again on Wednesday after it was bought by the US-based Coinsetter, with the deal reported to be worth $2m according to the newswire Reuters.

Jaron Lukasiewicz, chief of Coinsetter and now Cavirtex, said: "Coinsetter is proud to make Canadian bitcoiners a core focus of our company through Cavirtex, the most profitable and longest-running bitcoin exchange in Canada.

"Together we are making history, combining talent and resources to give clients an unparalleled BTC-CAD trading experience with a wide range of domestic bank transfer options, including a full banking relationship in Canada."

Under the deal both exchanges will retain separate brands, but share technology, capital, management and access to banks. The headquarters of Cavirtex will also move to Toronto, the financial capital of Canada.

The exchange originally shut down after a cyberattack compromised security data including obfuscated passwords, prompting Coinsetter to get in touch about a potential acquisition.

"Traders have trusted Coinsetter since 2012 to provide the best combination of high speed trading technology, ironclad security and liquid markets," said Marshall Swatt, CTO of Coinsetter and now Cavirtex.

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"As we integrate Coinsetter’s CSX exchange technology into CAVIRTEX in the coming weeks, we will create an unparalleled Canadian bitcoin exchange with low latency trade execution, margin trading and growing interaction with customers through our Toronto office."

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