Crypto Exchange, TradeSatoshi, Shuts Down Operations Raising Questions Of An Exit Scam
U.K based crypto exchange, TradeSatoshi, is shutting down its operations urging users on the platform to withdraw their coins before March 1. However, users are complaining of difficulties in withdrawing their coins raising questions of a scam.
TradeSatoshi shuts down operations
An official announcement on TradeSatoshi’s website confirms the exchange will be closing down stating the exchange is “no longer economically feasible to continue provide the required level of security, support and technology.” Furthermore the exchange dev team calls on all the users to withdraw their funds by March 1 and is not accepting any more deposits.
Tradesatoshi is closing down.
Read the announcement for details.https://t.co/GjSwwllxhT
Please make sure all withdrawals are completed before March 1 2020 00:00 UTC.
Please do not deposit! Deposits will no longer be processed. pic.twitter.com/4xxt2ZOa9P
— Trade Satoshi (@TradeSatoshi) February 20, 2020
Exchanges shutting down in the crypto space is nothing new but the nature in which TradeSatoshi is shutting down its operations is increasing skepticism amongst the users.
First of all, the short time period (11 days) to withdraw coins is not enough for all the users to withdraw their tokens. Furthermore, the exchange is asking users for additional KYC/AML requirements to effectively withdraw their funds.
A Scam Operation by TradeSatoshi?
Some of the users have complained on the difficulty of withdrawing funds given the additional KYC requirements needed. One user on Twitter complained,
“I have account whose 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.”
Furthermore, the KYC process takes approximately two months to complete, which according to the March 1 deadline will be almost impossible to complete.
The debacle of KYC additional requirements is something that pops up every single time an exchange is hacked or shuts down. The crypto community still searching for solutions to deal with the increasing closure and scams happening in the industry. But a lot more needs to be done to increase global adoption of crypto assets.