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  1. Canadian Bitcoin exchange Cavirtex, said to be the country's largest, will shut its doors after its two factor authentication credentials were probably compromised. The breach, spotted last Sunday, affected two factor secrets and hashed passwords stored in an older database and did not match log in details to identification records. "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," the company wrote in a statement. "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. "As a result of the potential compromise of our database we cannot be certain of the confidentiality of account credentials." Cavirtex said it was solvent and could allow customers to withdraw cash up to 25 March this year. Users were encouraged to change their passwords immediately and wipe Cavirtex browser cookies. The company said it had not lost customer funds. Source
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