Ex-change – Cryptocurrency exchanges declare bankruptcy over ‘poor market conditions’ and fraud

A pair of cryptocurrency exchanges have ceased trading this week, blaming the bear market and fraud as the main causes.

Huobi Australia announced that from February 26th, all operations will be handled by its global parent.

A statement read: “Due to poor market conditions and associated recent staff redundancies here at Huobi Australia, all operations, including the management of our platform, social media channels, and customer support will be managed by our team at Huobi Global headquarters starting 26th February 2019.”

Meanwhile, South Korea-based Coinbin declared bankruptcy because of embezzlement from a senior executive, Business Korea reported.

Users are owed an estimated 29.3 billion won (US$26 million).

Park Chan-kyu, CEO of Coinbin, said: “We are preparing to file for bankruptcy due to a rise in debt following an employee’s embezzlement.”

Hack attack

Coinbin took over the exchange Youbit in 2017, but Youbit folded in December 2017 after two major hacks.

Confidence in exchanges has also been rocked recently by the explosive revelation that Canada’s largest crypto exchange QuadrigaCX lost access to assets worth 250 million Canadian dollars.

Gerald Cotten, the founder QuadrigaCX , is believed to have been the only person with the encrypted keys needed to access investor assets.

Cotten died as a result of complications arising from Crohn’s disease in India in December.

The exchange has ceased trading and is currently being investigated by Canadian finance watchdogs.