Altsbit, an Italian cryptocurrency exchange is closing down in May 2020. The exchange’s discontinuation of its services is as a result of a hack it suffered on February b5, 2020. According to a report, $70,000 worth of cryptocurrencies missed as a result of the hack.
Altsbit Exchange to Close Due to $70K Hack
Per the blog post, Altsbit will be discontinuing its services in May 2020. According to the team, it suffered a hack on February 5, 2020. Cryptocurrencies stolen include 6,929 Bitcoin (BTC), 23.21 Ether (ETH), 3924082 Pirate Chain (ARRR), 414154 VerusCoin (VRSC), and 1066 Komodo (KMD). Nonetheless, a major portion of its assets was stored in a cold wallet, and these were preserved.
Altsbit further revealed that it will be compensating its customers with the funds held in the cold storage. However, they may not get their funds in full since what is left in the wallet will be split among users of the exchange.
Cryptocurrencies to be Refunded to Affected Users of the Exchange
Accordingly, 7.853 BTC, 9.052 ETH, 5695672 ARRR, 438572 VRSC, and 46949 KMD will be refunded to users of the exchange. These refunds will represent 53.10%, 28.06%, 59.20%, 51.24%, and 97.77% of the lost BTC, ETH, ARRR, VRSC, and KMD respectively.
Over and above that, affected users have been advised to log into the exchange to start receiving partial refunds. Also, they can request for withdrawal between February 10, 2020, and May 8, 2020. And after that timeframe, withdrawals will be terminated.
Altsbit Admins to Process Withdrawal Requests Manually
Altsbit has also outlined that its admins will process these payment requests manually. As such, it may take some time before customers are reinstated even though coins of higher value will be sent faster. Users have also been advised not to share their personal details with anyone promising to help them withdraw their funds from the exchange.
On the other hand, it is worth noting that Altsbit is one of the few cryptocurrency exchanges that has made an attempt to reinstitute to customers. It has towed the path of Coincheck, a cryptocurrency exchange that lost over $500 million in a single hack in 2018. On the same note, Binance cryptocurrency exchange had to reinstate its customers after $40 million worth of Bitcoin was stolen from its platform in 2019.
Quadriga CX and Others Closed Down After Inability to Access Funds
Altsbit move to close its platform after the hack may be questionable. However, given that it is a small exchange, the stolen amount must have done a number on them. Based on the current market rate, the lost fund is around $70,000. Other platforms that discontinued services due to a hack or inability to access funds include Canadian exchange Quadriga CX, South Korean exchange Youbit, and Canada-based Bitcoin exchange Cointrader.