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.
Please refrain for accepting tokens from addresses marked ‘heist’. Please share your views on the shutdown as well.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com