A South African cryptocurrency exchange, Ice3x, announced on April 6, that it will permanently stop operations, less than a month after suspending bitcoin and litecoin withdrawals. Ice3x, which one of the oldest crypto exchange in that country, says it came to this decision after lawyers advised the firm to start liquidation proceedings.
In a statement sent to clients on April 6, the exchange claims it â€œprocessed the withdrawals which have already been submittedâ€ and therefore, â€œall withdrawals from the platform have been disabled.â€ However, in the same statement, Ice3x urges frustrated clients to remain calm and â€œrespectful.â€
The statement continues:
According to the statement, Ice3x was scheduled to â€œprovide further details and the next stepsâ€ on April 7. At the time of writing, there had been no new updates on the exchangeâ€™s website.
However, according to a report by one local crypto media outlet, Ice3xâ€™s announcement on March 16 may have been prompted by liquidity challenges that the exchange experienced prior to the suspension of trading. To support this theory, the report quotes an unidentified and distressed Ice3x client who claims that when bitcoin dropped in value, the â€œstop losses on his order did not execute at his desired trigger price, but instead executed far lower.â€
According to the local report, this problem hints at â€œa lack of liquidity on the platform required to buy up stop orders of that nature.â€ At the time of writing, the Ice3x founder and CEO Gareth Grobler had reportedly not responded to requests for more information.
Meanwhile, the information on the exchangeâ€™s website shows that Ice3x went on to issue some 14 updates after the exchange initially reported discrepancies in balances. In its last update, the exchange asks clients â€œnot to create multiple ticketsâ€ saying this â€œonly increases the workload and amount of tickets the team needs to go through, which delays the operations significantly.â€
What are your thoughts on Ice3xâ€™s decision to stop operating? Tell us what you think in the comments section below.
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