TradeSatoshi, a popular crypto exchange, is announcing the shutdown of operations and its platform. Presently, the platform no longer processes deposits as it has informed users to withdraw their funds from the platform before next month. But users are reporting that they are having issues withdrawing their funds.
The crypto exchange firm revealed this shutdown in a twitter post. This may come as a surprise to users of the platform and the crypto community because the exchange was seen as one of the most popular for bitcoin trading.
Tradesatoshi is closing down.
Read the announcement for details.https://t.co/GjSwwllxhT
Please make sure all withdrawals are completed before March 1 2020 00:00 UTC.
Please do not deposit! Deposits will no longer be processed. pic.twitter.com/4xxt2ZOa9P
— Trade Satoshi (@TradeSatoshi) February 20, 2020
It has an established reputation as one of the top companies that offer a variety of services for trading in altcoin pairs. According to the TradeSatoshi, the company decided to shut down because it’s no longer feasible to run the exchange. It said it does not have the financial strength and economic viability to continue operating as an exchange company.
Users have until March 1 to withdraw their funds
The exchange has stated that users have until March 1 to make all necessary withdrawals from the portal before the final shutdown of the portal. However, many users are suspicious and think the deadline of fewer than two weeks is very short. To make matters worse, the many users who have tried withdrawing their money from the platform are having challenges. If the withdrawal challenges continue, users’ funds are more likely going to be stuck in the portal when it finally shuts down.
Many of the users are reporting that they are asked to go through an additional AML/KYC procedure before they can withdraw their funds. Although the procedure can be concluded, it generally takes about 8 weeks before the user can complete the AML/KYC procedure.
But with the 10 days deadline, it’s impossible to complete the procedure before the March 1 deadline. With this type of procedure put in place before withdrawal, many users are also suspicious of the alleged shutdown of the exchange.
Users fear TradeSatoshi may be another exit scam
Many users believe this procedure is a deliberate attempt by the company to deny them their funds when it finally shuts down operations. The procedure is gradually getting popular, especially among exchange companies facing liquidity issues.
Recently, Chinese Exchange FCoin shut down its operation as users were unable to withdraw more than $100 million of invested funds. With recent developments, users are afraid that this TradeSatoshi shutdown is another exit scam.