The cracked Gatecoin crypto-exchange, which was hacked in May 2016, announced on March 13 that it had received an order for compulsory liquidation from an unspecified court.
The company wrote that Gatecoin will be forced to immediately cease operations, noting that the exchange will help in the liquidation process in order to distribute assets among creditors.
In May 2016, a serious hack occurred in Hong Kong, and about 2 million US dollars were lost in cryptocurrencies after the company reported a security breach that gave hackers access to Gatecoin hot wallets.
According to the group at the time, hackers stole 250 Bitcoins (BTC) and 185,000 Ethereum (ETH), which accounted for 15 percent of Gatecoin’s total crypto-assets. According to CoinMarketCap, at the time of publication, this amount of BTC and ETH is about $ 25.5 million.
In a recent announcement, Gatecoin wrote that the firm began working with a payment service provider (PSP) after having problems with its banking partners in September 2018. In this position, Gatecoin apparently accused the PSP of the liquidation process, claiming that he was unable to process most of the transfers in a timely manner, which “almost paralyzed our work for many months and led to substantial losses.”
“Even after we managed to reduce our losses, replacing this PSP with more reliable alternatives for processing our customers' transfers in September 2018, the situation did not improve because the PSP saved most of our funds.”
The company explained that it tried to return the funds by initiating a lawsuit against the PSP, but she was told that it was unlikely that the funds could be returned in full, which caused financial difficulties, because of which Gatecoin could no longer support its operations.
Gatecoin also encountered problems in the banking sector in 2017, and some banks reportedly closed their exchange accounts with no detailed explanation.
Back in 2015, Gatecoin launched customer segregated bank accounts, which allowed two accounts to be created in the same bank under the name Gatecoin: one was designed to collect commissions and operating expenses, and the other was used to store customer deposits and process withdrawals. .
Founded in 2013, Gatecoin was reportedly the first crypto-trading platform that listed the Ethereum token in August 2015.
Another recently hacked crypto exchange, Cryptopia, has since partially restarted its website, also announcing that it will use customer balances saved since the moment of hacking as a basis for further discount calculation.