A Poland-based Bitcoin exchange has abruptly shut down operations, taking away the cryptocurrency funds of thousands of users alongside.
BitMarket announced on Monday that it ran out of liquidity on July 8, which prompted them to cease their operations for an indefinite period. The exchange also said it would update users with more updates.
Data provided by CoinMarketCap.com, updated 17 hours ago, showed volumes of close to $850,000. Compared to other exchanges, the statistics appeared weaker, validating that BitMarket was in a liquidity crisis. Nevertheless, the exchange left no clues about how it would go ahead with fund withdrawals. Scared users shared their grievances on social media platforms, with one of them noting a string of red flags.
Redditor ODOBANKS claimed that BitMarket was acting shady before making its announcement. The exchange allegedly asked users to change their passwords without providing any explanation. It later revised the users’ API profiles. In a separate instance, BitMarket also halted the withdrawal process of many users, demanding additional KYC.
“Exchange representatives, active on Polish bitcoin forum, claimed that this was the long-overdue KYC requirement and that they were only targeting people with expired IDs,” wrote ODOBANKS. “They never addressed users’ accusations of hiding the fact that the exchange has been hacked.”
$15.76 Million worth of Bitcoin Locked
BitMarket currently holds approximately 1,300 Bitcoin units in its wallets, which is equivalent to $16 million. Users under the stress of losing their hard-earned money have already formed a Facebook group. They are planning to file a class-action lawsuit against BitMarket founders and other top executives.
Experts have also started weighing in their opinions about recovering the missing users’ money. Noted economist Professor Krzysztof Piech told CHIP that clients cannot reimburse their bitcoin funds at this point.