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Canadian Bitcoin Exchange Cavirtex to Reopen Following Coinsetter Acquisition

(@yessi_kbello) | Published on April 8, 2015 at 16:31 GMT
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Top Canadian bitcoin exchange Cavirtex is expected to resume trading following its acquisition by New York platform Coinsetter.

The news comes after Cavirtex announced it was planning to shut down operations in March following a breach that compromised security information including password hashes the previous month.

Jaron Lukasiewicz, now CEO of both Coinsetter and Cavirtex, said measures had been taken to remove the possibility of an event like this happening again. He added:

"No customers have been financially affected by a compromise ... We feel strongly about our ability to protect customer funds and will keep minimal funds in hot wallets."

Coinsetter's acquisition, which was completed through a negotiated agreement with Cavirtex's voting shareholders, will see both exchanges operate under their own names but share technology and capital, alongside banking access.

The CEO said he intended to bring members of the old Cavirtex team into the new exchange, though it is unclear exactly how many will remain.

Lukasiewicz concluded:

"I’m excited to place a core focus on Canadian customers and believe Cavirtex provides important infrastructure to be successful in this market. We are the only bitcoin exchange with an approved domestic bank account in Canada, and we will be integrating Coinsetter’s trading technology to provide an unmatchable bitcoin exchange for Canadians."

Former Cavirtex account holders will be able to use their existing login credentials to access their accounts. "We ask all users who set passwords and 2FA devices prior to February to reset those items," noted Lukasiewicz.

Coinsetter's acquisition comes two months after it raised a second round of funding, boosting its total to $1.9 million.

Correction: An earlier version of this article stated that Cavirtex had resumed trading following its acquisition. The exchange will resume trading sometime in the next day, though an exact time has not been disclosed. 

Image via Shutterstock

AcquisitionsCanadaCoinsetterNew York

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