Gatecoin, a cryptocurrency exchange based in Hong Kong, has announced that it is shutting down and entering liquidation following failed attempts at recovering lost funds stemming from a dispute with a past payment services provider.
The news comes via an official statement on Gatecoin’s website.
As detailed by the company, Gatecoin ran into trouble with its banking partners in September 2018, which forced the lesser-known exchange to commence a working relationship with a payment service provider (PSP). Said provider is apparently fully-compliant with French regulations. However, Gatecoin blames the PSP for failing “to process most of the transfers in a timely manner.” States the exchange:
[This] in turn almost paralyzed our operation for many months and caused substantial loss on our side.
Things apparently got worse when Gatecoin decided to replace the problematic PSP with “more reliable alternatives.” The prior PSP allegedly retained a significant portion of the exchange’s funds. Legal action apparently had…