Bitcoin wallet service Instawallet said it has been hacked and will not reopen until it can develop an alternative architecture.

Instawallet said: "Our database was fraudulently accessed, due to the very nature of Instawallet it is impossible to reopen the service as-is."

"In the next few days we are going to open the claim process for Instawallet balance holders to claim the funds they had stored before the service interruption," Instawallet added.

Instawallet said that it will refund customers their balance if it is under 50 BTC and if several claims have been filed for the same url, claims will be processed on a case by case basis.

Last month, UK and Switzerland-based nonprofit organisation Spamhaus, which operates a filtering service, was hit by a distributed denial of service (DDoS) attack, which several security companies claim is the largest DDoS to date.

Spamhaus chief executive Steve Linford said that the company had been under this cyber-attack for more than a week.