Venezuelan Crypto exchange CoincoinX says it has “temporarily ceased” operations amid reports of users not being able to make withdrawals on its platform.
It is a move that has reportedly left “thousands” of customers unable to access their funds.
one in tweeted statementThe exchange said that users’ funds were “safe” and “safe”.
But it blamed “stagnation” on “Current regulatory situation in Venezuela,
It claimed that it was “temporarily” suspending its “operations” pending regulatory approval.
The company wrote:
“Our users’ funds are safe, secure and available for use as soon as we receive the necessary regulatory approvals, which will allow us to allow them to transact normally. We understand the anxiety and concern generated by this situation. And we appreciate your patience.”
CoincoinX blames “high costs of platform, infrastructure, development, security, and maintenance” [its] Task Force” for this step.
But some have claimed that this firm has been processed bitcoin (btc) digging.
The firm wrote:
“It is impossible for us to continue providing the services we normally provide without risking [customer] Funds and accumulated liabilities from our suppliers.
Many of CoinCoinX’s products were backed by its massive domestic mining operations.
media outlet cryptnoticious The report said that government-run Petropay is also facing “problems on the platform since almost a month”.
Users of this platform are reportedly claiming that their funds are “frozen with no way to withdraw them.”
Venezuela’s Crypto Crackdown – Are Crypto Exchanges the Latest Victim?
A widespread cryptocurrency is appearing widely in Venezuela.
The action is part of an investigation into alleged government corruption.
SunCrip, the state crypto regulator, has been the subject of a major investigation into embezzled state funds.
Its former head, Joselit Ramirez, sacked and sent to jail,
Several prominent Suncrip officials have also been arrested.
Eagle-eyed Twitter users also noticed that the logo Petro (PTR)The Venezuelan state-owned, oil-backed crypto asset was removed from the SunCrip headquarters.
The SUNACRIP mark has also been removed, a possible sign that the government will move to dissolve the regulator.
The crackdown on crypto mining has seen miners surrendering their rigs to police officers across the country.
Venezuela has previously sought to promote crypto-powered business and state-owned companies have been Actively using crypto as a payment instrument in international trade,
A deepening political row with Washington has seen the United States attempt to stabilize trade through international economic sanctions.
The government believes SUNACRIP executives may have stolen $3 billion worth of cryptocurrency from state-run firms.