Bitcoin wallet site Instawallet has been taken offline after a security compromise, has suspended its service indefinitely. Hackers fraudulently accessed company database. Bitcoin-Central is expecting to have their services back up and running within 48 hours and have promised to give 24 hours notice before going live. Bitcoin is a virtual currency that uses a peer-to-peer system to confirm transactions through public key cryptography. It may be a day or two before the effect of this theft on the currency can be determined.
Source: https://thehackernews.com/2013/04/bitcoins-wallet-service-instawallet.html