Major virtual piggybank pickpocketed

Bitcoin wallet company Instawallet suspended its service “indefinitely” after being hacked. The computer program provided a way to easily store the virtual currency – which is money outside the purview of governments and central banks.

The company had its database “fraudulently accessed” and has opted to shutter until developing a new architecture that is more secure.

“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,” a notice on the old site reads.

While instant transfers between Bitcoin holders are protected, the software used to save Bitcoins may not be in many cases.

Bitcoin prices have faltered after past breaches, and one incident in June 2011 is thought to have triggered a massive sell-off in Bitcoins.