Venezuelan Crypto Exchange CoinCoinX ‘Temporarily’ Halts Operations – What’s Going On?
The Venezuelan crypto exchange CoinCoinX says that it has “temporarily stopped” operations amid reports users cannot make withdrawals on its platform.
It is a move that has reportedly left “thousands” of customers unable to access their funds.
In a tweeted statement, the exchange said that users’ funds were “safe” and “protected.”
But it blamed the “pause” on the “current regulatory situation in Venezuela.”
It claimed that it was “temporarily” halting its “operations” pending regulatory approval.
The company wrote:
“The funds of our users are protected, secured, and available for use as soon as we obtain the necessary regulatory approval that will allow us to let them make transactions as normal. We understand the concern and worry caused by this situation. And we appreciate your patience.”
CoinCoinX blamed the “high costs of maintaining the platform, infrastructure, development, security, and [its] workforce” for the move.
But some have claimed that the firm has been hit by a crackdown on Bitcoin (BTC) mining.
The firm wrote:
“It is impossible for us to continue providing the services that we usually provide without risking [customer] funds and accumulating liabilities from our suppliers.”
Many of CoinCoinX’s products were backed by its sizeable domestic mining operations.
The media outlet Criptonoticias reported that the government-run PetroApp has also been experiencing “problems on the platform for almost a month.”
Users of this platform are reportedly claiming their funds are “frozen with no way to withdraw them.”
A wider crypto crackdown appears to be sweeping Venezuela.
The crackdown is part of a probe into alleged government corruption.
SUNACRIP, the state crypto regulator, has been the subject of a major investigation into
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