Negocie Coins, a Panama based cryptocurrency exchange owned by Brazil’s Bitcoin Bank Group is facing multiple lawsuits from users who claim they are locked out from accessing their funds. The Bitcoin investment firm released a statement on the issue saying they are working on the platform’s problems asking users not to worry on the safety of their funds.
Negocie Coins Crypto Exchange Faces Lawsuits in Brazil
The news first broke out on June 18th when several clients of the Negocie Coins cryptocurrency exchange complained on the inability to withdraw their funds from the platform. The issue has since moved to court with the users claiming for their digital assets to be released by the exchange. The escalating problems with the exchange have prompted Coinmarketcap to issue a warning on trading on the exchange:
“We have received reports that user deposits and withdrawals are impeded. Please be careful with your funds.”
Toted as the best exchange in Brazil, Negocie Coins is yet to live to the billing owing to the security issues the exchange has faced in the past weeks and these recent withdrawal troubles. Reports from Brazil confirm a number of lawsuits have been filed across various cities in the country including investors from Rio Grande do Norte, Minas Gerais, Goiás, Sergipe, Santa Catarina, and Rio de Janeiro.
Despite the lawsuits and the troubles some investors face in depositing and withdrawals, the company still hit $1 billion in trading volumes in the past 24 hours. This, however, said to be fake volume as the BTC held in GBB’s exchange wallets is yet to be accessed.
The frustration is creeping into some of the BTC investors on the site who are willing to sell off their digital assets at insanely discounted prices. A user on Negocie Coins went as far as selling their BTC at a 90% discounted price due to the continued problems at the platform.
This is not the first time…
“When It Rains It Pours.”
This phrase seems to be the best description of Negocie Coins exchange’s current situation. The platform is still recovering from malicious attacks conducted on the exchange in mid-May which affected operations on the site. It remains unclear if these hacks are the reason behind the halted withdrawals and deposits.
In defense of the exchange, the GBB released a report explaining the recent hacks to instill confidence in the investors that their money and investments remain safe with the exchange. The report further praised the development team’s effort in stopping the hacks and providing quick solutions and excellent customer service and conflict resolution. He further said,
“The company has never denied service to its users, always prioritizing good relationships. The GBB is already acting decisively to resolve the matter, and will take steps to correct any misunderstanding that may have been experienced by the client.”
We reported on the difference in the President’s opinion and Brazil’s Central Bank head on the issue of cryptocurrencies earlier in the month. This has been followed by the creation of a regulatory sandbox in Brazil, where a number of fintech corporations have joined to allow the understanding of blockchain across the country.