Bitcoin Exchange Gatecoin Shuts Down Citing Financial Difficulty

Hong Kong-based bitcoin exchange Gatecoin has said it is shutting down citing financial difficulty. The exchange suffered a $2 million hack in 2016 and hasn’t been able to recover the funds. However, Gatecoin blames a registered French payment service provider for paralyzing its operations. The payments company allegedly duped the exchange out of an unspecified amount of money in unsettled transfers.

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Payments Provider Cripples Exchange Operations

“We have suffered financial difficulty over a period time to an extent that we are no longer able to support our operation,” Gatecoin lamented in a statement published on its website announcing the shutdown on March 14. The court on Wednesday “granted a winding-up order against our company. A provisional liquidator has been appointed and we have to cease operation with immediate effect,” it added.

Founded in 2013, Gatecoin was focused entirely on bitcoin, ethereum, and ethereum-based token markets. In 2016, the exchange reported that it had lost 185,000 ETH and 250 BTC of investor funds to hackers, worth a combined $2.14 million at the time. The funds were never recovered. But the hack has not been the