Gatecoin Crypto Exchange to Shut Down on Court’s Orders

Hong Kong-based cryptocurrency exchange Gatecoin will shut down and enter liquidation after an unsuccessful attempt to recover funds lost in a dispute with a former payment services provider.

Announced yesterday, the company distributed the message to customers via their corporate website. There, the team behind the project explained the suspension of the service occurred after months of battling to stay afloat, and ultimately, a court order to wind-up and cease operations immediately.

In its public statement, the company blamed its prior payment service provider (PSP) for this situation. The exchange said it began having issues with banking services in September 2018, after the sudden freeze of its bank accounts in Hong Kong.

In November last year, Gatecoin announced that it would resume operations after resorting to an unnamed European payments processor – ”a fully regulated payment institution by the French regulator” they stated – and a bank in Switzerland.

The team stated:

“Even after we managed to mitigate our loss by replacing that PSP with more reliable alternatives to process our clients’ transfers in September 2018, the situation did not improve because that PSP retained a large part of our funds.”

The exchange finished it’s message assuring customers that it expects to redistribute its remaining assets to the creditors.

Since 2016, the exchange has had a series of troubles unrelated to its banking services, as it lost 185,000 ETH and 250 BTC in a cyber attack. Still, it appears the exchange will become the latest casualty of struggles to obtain adequate financial services.

In March, Bloomberg reported on how industry startups remain unable to even open up standard checking accounts. The article profiled stories from even established cryptocurrency businesses and raised the profile of what appears to be an ongoing issue.

At press time, CoinDesk was unable to obtain the full court order detailing the liquidation process. According to a discussion on a Reddit dedicated to the exchange platform, customers, including those who say they lost funds in the 2016 hack, also appear in the dark on whether they will be reimbursed.

Read the full message below:

Gatecoin image via Shutterstock

Author: Diana Aguilar

Source link

Related posts

6 Thoughts to “Gatecoin Crypto Exchange to Shut Down on Court’s Orders”

  1. Thanks for finally talking about >Gatecoin Crypto Exchange to Shut
    Down on Court’s Orders – TradingBTC.com <Liked it!

  2. I all the time used to read piece of writing in news papers but now as I am
    a user of net therefore from now I am using net for posts, thanks
    to web.

  3. Attractive component to content. I just stumbled upon your website and in accession capital to assert that
    I acquire actually enjoyed account your blog posts.

    Anyway I’ll be subscribing on your feeds or even I success
    you get right of entry to consistently fast.

  4. I am definitely bookmarking this website and sharing it with my acquaintances. You will be getting plenty of visitors to your website from me!

  5. I really like your article. It’s evident that you have a lot knowledge on this topic. Your points are well made and relatable. Thanks for writing engaging and interesting material.

  6. What’s up all, here every person is sharing these kinds of familiarity, thus it’s good to read this
    webpage, and I used to go to see this weblog all the
    time.

Leave a Comment