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