Gatecoin begins liquidation process; directors’ power soon to cease following liquidators’ appointment

The Hong Kong-based crypto exchange, Gatecoin, initiated liquidation process and will soon cease powers of its directors, according to a document obtained by The Block.
According to the document drafted by Hong Kong-based law firm Borrelli Walsh, two representatives from the law firm were appointed as liquidators for the entire process by the High Court of Hong Kong Special Administrative Region. Following this, all powers and control of the exchange’s directors would be terminated. Henceforth, all affairs of the exchange  will be practiced by official liquidators or “authorized representatives.” The document further mentioned,
“Among other things, the responsibilities of the Liquidators include identifying, taking control of, securing and realising the assets of Gatecoin and to carry out such investigations as the Liquidators may consider appropriate.”
Gatecoin exchange started working with the French regulator, Payment Service Provider [PSP], after a fallout with its banking partners. The exchange then claimed that PSP failed to process client transfers promptly, which resulted in a substantial loss for the exchange. In order to pacify the losses incurred, Gatecoin replaced PSP with “more reliable alternatives.”
A report published by the exchange team stated that the alternative did not help as most of the funds were retained by PSP. The exchange team then resorted to legal action against the French regulator, but were advised that it was highly unlikely to recover the funds. After prolonged financial losses, the court granted a winding-up order against Gatecoin.
Gatecoin was one of the first cryptocurrency exchanges launched back in 2013. In May 2016, the exchange revealed that a hacker was able to “alter” its security system following which, cryptocurrencies worth 185,000 ETH and 250 BTC, equivalent of $2 million at that time, were stolen from the platform. Currently, the amount approximates to $26 million.
Nearly 15% of the total cryptocurrency deposits held by the exchange were stolen. A security investigation was conducted by Tehtri Security, after detecting suspicious transactions. To prevent more loss of funds, the crypto firm suspended its services.
The post Gatecoin begins liquidation process; directors’ power soon to cease following liquidators’ appointment appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin [BTC] exchange Gatecoin shuts down after exchange fails to recover from financial complications

Gatecoin, the Hong Kong-based Bitcoin exchange, announced the closure of all operations indefinitely after facing multiple financial complications. The exchange was in liquidation after it failed to recover its losses suffered back in 2016 after a $2 million hack.
The development team announced that its services were suspended after the exchange struggled to stay relevant financially for months.
The exchange also dealt with the disruption of bank accounts after the 2016 hack. In September 2017, the exchange’s Hong Kong-based accounts were taken down and they had remained inactive till the date of the shutdown.
The official statement stated,
“We have suffered financial difficulty over a period time to an extent that we are no longer able to support our operation. The court on Wednesday granted a winding-up order against our company. A provisional liquidator has been appointed and we have to cease operation with immediate effect.”
Gatecoin was launched in 2013 and the exchange was dedicated to Bitcoin, Ethereum and Ethereum-based token markets. During the 2016 hack, the exchange reported that it had lost a total of 185,000 ETH and 250 BTC, worth $2.14 million of investor funds.
The exchange failed to recover the funds, but the company refused to completely shutdown after the incident. The exchange blamed a registered French payment service provider for freezing its operations.
The exchange released the following statement,
“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 a substantial loss on our side.”
The exchange eventually mitigated its losses, but recovery was a little too late. The situation failed to take a better stance after PSP retained a large number of Gatecoin’s funds.
The post Bitcoin [BTC] exchange Gatecoin shuts down after exchange fails to recover from financial complications appeared first on AMBCrypto.
Source: AMB Crypto

Gatecoin ‘winds-up’ Business; Ethereum Wallets Tagged With Links To Gatecoin Hack

Courts have ordered ‘liquidation’ of the Hong-Kong based cryptocurrency exchange, Gatecoin. According to an announcement on their website.
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.
Nevertheless, the exchange assured its customers of reimbursement of their credit amount in due time.
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.
Riddled with Problems
Gatecoin’s winding-up orders came due to liquidity and insolvency problems in the exchange. The announcement on their website noted that they had entered into a dispute with their French Payment Service Provider (PSP).
According to the Annoucement on their webiste:
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.
Three years ago, the exchange had been robbed of 185,000 Ether (ETH) tokens and 250 Bitcoins (BTC) worth $2 million at the time. The funds were stolen from the hot wallets of the exchange. The case of the stolen cryptocurrencies worth $25 million according to current prices, remains unsolved to-date.
Track the funds here
However, the transparent open ledger of Ethereum has come to the disadvantage of the robbers in the Gatecoin hack. The wallets on the ledger which hold the stollen Ether (ETH) tokens have been tagged by the crypto community and the funds are being tracked.
Four Ethereum Wallets have been directly linked to the Gatecoin scam of 185000 ETH tokens. The fourth wallet has reportedly been emptied. The balance in the other three wallers accounts (Address 1, Adress 2 Address 3) for the remaining 155000 ETH tokens.
Ether Wallets Tagged: ‘Heist’ – Gatecoin Stolen Funds Wallet
Please refrain for accepting tokens from addresses marked ‘heist’. Please share your views on the shutdown as well.
The post Gatecoin ‘winds-up’ Business; Ethereum Wallets Tagged With Links To Gatecoin Hack appeared first on Coingape.
Source: CoinGape