Popular UK-based crypto exchange TradeSatoshi has announced that the platform will be shutting down. The platform has stopped processing deposits and has requested users to withdraw their funds before March. However, people using the platform have reported that they are unable to withdraw their digital assets.
TradeSatoshi closes shop
The company revealed the news through a Twitter post, saying that the exchange would be shutting down. The exchange had established a reputation, as it was a UK-based exchange that offered a wide range of altcoin trading pairs. The Tweet linked to a post on the TradeSatoshi’s website which held details regarding the decision by the company.
The company has given users a deadline of 1 March to withdraw their funds which seems highly suspicious as the date gives them less than 10 days to retrieve their assets. Many users have reported that they have received demands of additional AML/KYC procedures while withdrawing their funds. These users have already been approved by the platform.
While AML/KYC can be fulfilled, it can generally take as long as eight weeks for the process to complete. As such it is very difficult to comply with these demands before the deadline arrives. Meanwhile, some users claim that they are unable to withdraw funds even after meeting the additional requirements.
This type of demand for surprise AML/KYC has become common for exchanges and other crypto platforms that have run into financial trouble. The laws governing AML/KYC enable the platform to freeze your accounts under the name of regulatory compliance.
Previously, we saw that Chinese exchange FCoin shut down owing over 100 million dollars to users. These kinds of events cause investors to fear exit scams when anything unusual happens.
Featured image by pixabay.
