The famous Hong Kong based Bitcoin exchange named Gatecoin has announced on 14th of March 2019 that it is going to wind up soon due to financial difficulty. The Gatecoin exchange has suffered a hack of $2 million back in the year 2016 and has not yet been able to recover the funds. Nevertheless, Gatecoin has blamed a registered French payment service provider for paralyzing its operations. The French payment company has allegedly deceived the Gatecoin exchange out of an unspecified amount of money in the unsettled transfers.
The Bitcoin exchange Gatecoin was founded back in the year 2013 that focussed completely on the Bitcoin, Ethereum and Ethereum based token markets. In the year 2016, Gatecoin reported that it had lost 185,000 ETH and 250 BTC of the investor funds to the hackers that when combined yielded $2.14 million at that time. Moreover, the funds could not be recovered although this is not the reason of the winding up of the Bitcoin exchange.
Eventually, Gatecoin replaced the payments company in September helping to mitigate loses but it was too late then. To the amazement, the situation never changed after that in a positive way mainly due to the former PSP had retained a large amount of Gatecoin’s funds. Gatecoin detailed that even after trying for months to mitigate loses, they were not able to at any cost and that they have commenced legal action against the payments provider although they advised the exchange that they would not be able to recover the funds completely. The exchange assures that they will assist the liquidation process in a bid to expedite the realization and redistribution of their assets to the creditors. It was found that the banking problems of the exchange started in September 2017.