Canada-based Flexcoin Bank was robbed by hackers of $600,000. The bank says it does not have the resources to recover from the loss and will shut down. BelPointe Asset Management Strategist David Nelson is questioning the coincidence between the Mt. Gox bitcoin bankruptcy and this latest incidence. Nelson believes Mr. Gox was a ponzi scheme and the private market should step in with bitcoin insurance. At present, Bitcoin has no regulations, making it susceptible to fraud.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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