The organization claims the attack happened on March 2nd, in which attackers transferred the bitcoins to two different addresses.
"As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately." the company posted a statement on its main page.
The bitcoins stored in cold storage were not affected by this breach, as coins were held offline. Those users who put their coins into cold storage will be contacted by Flexcoin and asked to verify their identity.
For others, the company pointed out a link to TOS, where it says "Flexcoin Inc is not responsible for insuring any bitcoins stored in the Flexcoin system. You are entering into this agreement with Flexcoin Inc. You agree to not hold Flexcoin Inc, or Flexcoin Inc's stakeholders, or Flexcoin Inc's shareholders liable for any lost bitcoins."
The company says they are working with law enforcement and trying to find the cause of the security breach.