Hong Kong crypto exchange Gatecoin is closed and proceeds to the stage of liquidation in accordance with the decree of the court, evidenced by the notice on the website of the company.
“In light of the circumstances we were experiencing financial difficulties for some time, the scale of which does not allow us to continue to conduct its operations, writes the exchange. – March 13, 2019, the court issued a decision on liquidation of the company.”
In 2016 Gatecoin was under attack, losing 185 000 250 Ethereum and bitcoin, or about $2 million Although this incident had a significant impact on the welfare of the exchange, he did not become the reason for which Gatecoin has had to close.
In an official statement Gatecoin connects the forced liquidation of its business with actions of third-party payment providers:
“As you may know, after we started having problems with banking partners in September last year, we began to work with the payment service provider (PSP). PSP not, however, spent most of his payments in a timely manner, which in turn nearly paralyzed our business for several months and caused substantial losses to our side.””Even after we managed to avoid further losses by withdrawing from the PSP to a more reliable alternative service, which is engaged in the processing of transfers, the situation has not improved, because a significant portion of our funds remained at the disposal of the PSP. After spending several months in attempts to return these funds, we have filed a lawsuit against the PSP, but got the answer that we are unlikely to be able to return all funds due to us,” added the exchange.
Gatecoin was founded in 2013 and was one of the first regulated bitcoin exchanges. The remaining accounts of its assets, the company intends to distribute to the creditors.
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