Gatecoin cryptocurrency exchange enters liquidation

Sadly for crypto investors another crypto currency exchange has disappeared. A court in Hong Kong granted the winding up order meaning that the Gatecoin cryptocurrency exchange enters liquidation.

Gatecoin cryptocurrency exchange enters liquidation

Gatecoin cryptocurrency exchange enters liquidation

The Gatecoin website was taken down yesterday and replaced with the following statement

Dear users,

As you may know, following our issues with our banking partners in September last year, we started working with a Payment Service Provider (“PSP”) which is a fully regulated payment institution by the French regulator. However, that PSP failed to process most of the transfers in a timely manner which in turn almost paralyzed our operation for many months and caused substantial loss on our side. 

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. 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. 

In light of the circumstances, we have suffered financial difficulty over a period time to an extent that we are no longer able to support our operation. On 13 March 2019, the court has granted a winding-up order against our company. A provisional liquidator has been appointed and we have to cease operation with immediate effect. Please rest assured that we will assist the liquidation process in order to expedite the realization and redistribution of our assets to the creditors. 

Once again, we thank you for your support over the years and apologize for the inconvenience that may cause. 

Sincerely,

The Gatecoin Team

In 2016 Gatecoin fell victim to an alleged hack, and with many investors still with funds outstanding from that hack, it is perhaps unsurprising that social media platform Twitter is awash with accusations that this winding up order is perhaps a way to avoid reimbursing those who fell victim at the time.

As with any other closure or hacks of any exchanges we cannot comment on the validity of any claims made by the company or investors. We can only hope that they take a proactive approach to resolving the outstanding debts and provide regular updates to their community. For all investors we sincerely hope that they receive their lost funds, but if the Mt. Gox situation is anything to go by, this could be a very long and drawn out process.

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