United Kingdom-based cryptocurrency payment platform Cubits has filed for administration following a sudden outage that locked customer funds, a company press release revealed Dec. 11.The act of filing for administration means that an insolvent company has appointed an external administrator in order to act of behalf of its creditors.
Cubits, the trading name of legal entity Dooga Ltd., claimed it had lost funds worth €29 million to "Fraudsters" in February 2018 that it was unable to reclaim.
Now, Dooga has brought in administrators "To work with those who are owed money by the Company and to collect monies that are owed."
Cubits users had raised the alarm Monday after the platform's website went offline.
Some users reacted coldly, claiming they had already been waiting several weeks to withdraw funds.
Opus Business, now in charge of Cubits' administration, has not responded to a request for comment on users' locked funds by press time.
The February episode focuses on three Chinese traders who allegedly purchased Bitcoin on Cubits via Malta-based payment processor Pay Secure Online Ltd, regularly known as PaySec.
The company allegedly never paid Dooga the fiat due, leaving the company with debts totalling €35 million.
In a separate controversy, an analysis of Dooga's activity on LinkedIn revealed its payments coordinator Eloise Debono is an endorser of infamous alleged ponzi scheme OneCoin.
Its head of crypto business, Max Krupyshev, left the company in November before its financial woes became public.
Crypto Platform Cubits Begins Insolvency Procedure After Alleged Hack, Locks Users' Funds
gepubliceerd op Dec 12, 2018
by Cointele | gepubliceerd op Coinage
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