The crypto exchange based in Hong Kong-Gatecoin made official announcements that the platform is shutting down all operations and is entering a liquidation phase after the many failed attempts at recovering the lost funds that emerged from a dispute with a payment services provider. In our cryptocurrency news today we read more about the official statement.
Gatecoin published their statement on their website where you can read that the company described how the exchange got into a lot of trouble with its banking partners in September 2018. Gatecoin was later forced to commence a working relationship with the payment provider (PSP). The payment provider turned out to be fully compliant with the French crypto regulations but Gatecoin blamed the PSP for ‘’failing to process most of the transfers in a timely manner.’’ The exchange continued:
‘’This in turn almost paralyzed our operation for many months and caused a substantial loss on our side.’’
A couple of weeks later, things got even worse after the crypto exchange decided to replace the existent PSP system with another reliable alternative. The previous PSP allegedly held onto a significant part of the exchange’s funds. Gatecoin tried to take legal action to recover the funds but didn’t manage to get a positive result. The statement continues to explain:
‘’After months spent trying to recover those funds, we commenced legal action against that PSP but were advised that it is unlikely that we would be able to recover the funds from them in full.’’
The financial problems that hit the exchange really came hand in hand with the prolonged bear market which has led to Gatecoin closing up the gates. The company was also ordered to stop all operations by a court on March 13, 2019, and a provisional liquidator was assigned to take control of the liquidation process. The statement claims:
“Please rest assured that we will assist the liquidation process in order to expedite the realization and redistribution of our assets to the creditors.’’
Gatecoin is now just one of the many exchanges on the list the failed to survive the prolonged crypto winter since many blockchain-based firms and exchanges still up to this day, struggle to stay afloat or end up flushed out the waste.
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