Popular British TradeSatoshi crypto currency exchange, which started in 2015, announced the closure. This will happen the first of March at 03:00 Moscow time. However, traders who have used a given platform are already complaints: they can’t take their money. The exchange was popular due to its location in the UK, and due to the wide range of trading pairs with Althingi.
What happened to Tradesatoshi
Tweet from exchange appeared yesterday in 18:07 in Moscow. It says that TradeSatoshi ceases.
Tradesatoshi is closing down.
Read the announcement for details.https://t.co/GjSwwllxhT
Please make sure all withdrawals are completed before 1 March 2020 00:00 UTC.
Please do not deposit! Deposits will no longer be processed. pic.twitter.com/4xxt2ZOa9P
— Trade Satoshi (@TradeSatoshi) February 20, 2020
In fact, the circumstances of the closing of the exchange rather odd. The statement provided a link to the website TradeSatoshi, which repeated the message about the termination of acceptance of deposits and traders are recommended to withdraw funds before the first of March 2020. The deadline of the withdrawal of the remaining money raises suspicions: traders were given just ten days to solve the issue.
In addition, clients have reported unexpected requirements for additional procedures AML/KYC for users who have long had verified accounts. Other customers say that the validation process takes up to two months, and so to withdraw funds before the deadline just physically impossible. There is also information that the money is not given even after the additional requirements in respect of AML/KYC.
Recall, for the procedure KYC or "know your client" you need to photograph themselves on the background documents.
I have whose account is withdrawal options are not highlighted. Your support said that I need to update kyc but I had already completed my kyc and it has been approved by your side too. Kindly let me withdraw my coins. Please provide solutions.
— Bebaak_balwinder (@BalwinderBebaak) February 20, 2020
It seems that exchange is recognized in the identity verification process is a very profitable opportunity. Especially if they really are experiencing serious financial problems. In accordance with the applicable laws on anti money laundering and KYC, representatives of the exchanges can just count your transactions as suspicious and to freeze the funds under the pretext of compliance.
Often the exchange-ephemeral use this trick to buy time and ultimately not to return money to customers. However, this behavior can be observed in case of bankruptcy or hacker attack on a completely legitimate and responsible exchange. Although this space is still a lot of exchanges, where there is no need to confirm the identity. Although over time they also become smaller.
Exchange TradeSatoshi had no immediate comment on customer complaints regarding withdrawals. Moreover, the platform somehow, carefully watching those who can view her tweets.
Before that, many users of cryptocurrency already acted to oblige cryptocurrency exchanges to provide cryptographic proof of the existence of “reserves” in offline cold storage. This would allow each individual user to verify the solvency of any of the exchange and to decide whether he is ready to trust her.
Despite the fact that to connect these two stories with each other is, the situation is a mirror reminiscent of the difficulties faced by Chinese traders in recent same South Korean exchange Upbit.
Today readers of our chat was complaining about the exchange. According to the user under the nickname Alex Besfamilny, representatives of the platform "banned the output in bitcoin".
Most likely, with the increasing number of break-ins, acts of mismanagement and exit Scam the demand for transparent decisions on proof of financial viability will only increase. If you wager your money, the phrase "Trust, but poverty" sounds like never appropriate.
One of the solutions to such problems are decentralized exchanges, which in recent years is rapidly gaining momentum. Their work is designed so that users do not transfer their money deposited with third parties, and transactions involving cryptocurrency pairs are held in a P2P format, that is exclusively between the buyer and seller.
In the first half of the month to the idea joined the exchange Binance. Platform has launched a P2P-exchange of crypts on the basis of the ruble, which the Russian members can buy and sell USDT, BTC, ETH, and BNB for the national currency. Simply update your mobile app that works on iOS and Android.
In the case of Tradesatoshi could be worse. All users can at least try to withdraw funds — though not in a very convenient coin. For example, traders Cryptopia after the break this was not possible. By the way, representatives of the team 2Биткоина also lost your coins. So trust the storage of cryptocurrency exchanges impossible — in the case of burglary or closing, you may not save even two-factor authentication.
In our cryptodata wise traders you will find lots of other useful information.
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