The subscribers of Cubits, a UK based crypto exchange and wallet service, are upset about its sudden disconnection of service after a suspicious delay in payment.
A Closed Website
Cubits, owned by a company named Dooga, created in 2014 in London, was accused of being hacked at the beginning of the year which led to a court case of which the company won in August.
While It is yet to be ascertained if the court case affected Dooga negatively, the sudden disappearance of service on December 10 remains a mystery.
The company recently tweeted:
The same message is also featured on their official website, Cubits.com, and now, an error message appears when trying to access the website.
There seems to be a rearrangement within the ranks of Cubits at the moment. The COO, Max Krupyshev, who has served since April this year resigned in the past month, according to LinkedIn data.
Also, the social network profile of the payments coordinator of the company, Eloise Debono, showed a former work relationship with OneCoin, a well-known Ponzi scheme and also an article deliberating on whether OneCoin can be referred to as “the new Bitcoin.”
In response to the announcement made on Twitter, a lot of messages poured in talking about the company’s payment delays and the unavailability of information.
A customer wrote the following complaint:
“I sent money (out) and it hasn’t turned up,”
Another customer wrote:
“Where have you been the last week. Since my case was escalated to the financial team, or so you say, you won’t even respond to my emails. That is unbelievably inconsiderate of your customers.”
Could this be the Usual Bear Market Woes?
As an apparently legal company which has been in existence since 2014, Cubits usually takes part in industry conference as a major sponsor and just this November; they participated in the Malta Blockchain summit.
Another explanation which spectators have is related to the fall in the price of Bitcoin when its value went down by 80 percent.
Hence, it is a possibility for businesses like Cubits, known to be legal, to become bankrupt. It is also possible that the tweet released by the company, “we’ll be right back,” could just be a ploy to buy time so that the company’s executives could conceal their trails.
In the meantime, negative news has been filtering in from different crypto companies; an example is the $136 million annual loss reported last week by Galaxy Digital
Bitmain was not spared too, as the firm lost in Q3 the sum of $740 million.
Sudden disconnection of service is not a new occurrence for crypto investors who make use of third-party payment services.
Companies like Coinbase have had a tough time both last year and this year in keeping up with complaints due to lack of personnel to handle them as well as technical difficulties.
Trace Mayer, an investor and Entrepreneur, has made a call for all Bitcoin investments in the crypto community to be withdrawn from third parties come January 3. He referred to this movement as ‘Proof of Keys.’