Israeli Crypto Wallet BT360 Shuts Down; Users Locked Out of Accounts

Popular cryptocurrency wallet in Israel, BT360, shut down its services on February 12 this year after which users have been unable to access their funds. The company suggests that it did so to check for financial irregularities.

Owner and CEO blame each other

The news of the shutdown and its consequences was revealed by fintech publication Calcalist last week. According to the Israeli outlet, the company’s owner Eyal Sadeh fired its CEO Erez Fischler. He said that the action came after finding irregularities in the way customer funds were handled. He also notified that the site had been shut down to check for these irregularities. Sadeh added that the services will be back online after the authorities give it a clean chit. Users will regain access to their accounts.

Calcalist also published Fischler’s point of view, which suggests that he has not done anything wrong. He claimed that he had quit the company weeks before the owner shut it down because of which he does not have access to customer accounts anymore. The former CEO also said that he could not be held liable for losses because he is not associated with the company any longer.

Users left in the dark

Decrypt also ran a story about this issue recently, featuring interviews from some users. One user named Paz suggests that both Eyal and Fischler are busy at pointing fingers at each other. The user reportedly went to the company’s office last week to enquire, but Fischler said that all computers were seized by the authorities. He even asked him to be patient while he was suing Sadeh for the mess. On the other hand, Sadeh denies any wrongdoing on his part.

Paz has about $50,000 stuck in his BT360 wallet and is one of many who have lost hundreds of thousands of their hard-earned money because of the ongoing issues.

Fischler doesn’t have a reliable history in the market. He reportedly owned a chocolate business that later went bankrupt. He was served with 40 debt claims as well. Israeli crypto exchange Bit2C operator Eli Bejerano noted that he lost an unspecified amount while working with Fischler last year. The two were working on launching a new crypto loan product.