In March, iCE3 published a blog post advising users to remove their cryptocurrency portfolios from the site after the discovery of anomalies in the platform's balances.
Major Updates
- This announcement comes less than a week after the company informed clients that it will handle withdrawal requests for all cryptos and rands except bitcoin and litecoin.
- Additionally, the crypto exchange has halted customer funds withdrawals.
On Monday, cryptocurrency exchange iCE3 announced that it had been "advised to launch liquidation proceedings" after the suspension of all trading on the exchange in March due to the detection of account anomalies
Several iCE3 clients reported that their withdrawal requests were not accepted. They were met on Monday with a brief statement that the firm must halt all withdrawals and begin liquidation proceedings.
It is uncertain whether all withdrawal requests were handled but for bitcoin and litecoin, which are likely to make up the majority of cryptos kept in client accounts on the exchange.
The client creates a blank.
One iCE3 client, who requested anonymity, informed Moneyweb that he has been attempting to remove his cryptocurrency for many weeks without success. “Up until Monday, I received emails from the organization informing me that my removal request was being processed. And, all of a sudden, the firm released a note announcing the suspension of withdrawals and the company's impending liquidation.
“I'm afraid I'm going to ruin everything I've worked for in my account.”
iCE3 discontinued its Facebook presence, prompting clients to create their own page to exchange tips and details. “Because the ICE3x management has abdicated their responsibilities for handling the narrative around this topic, this page has been developed as a hub for citizens to discuss ideas for moving forward and status updates on the issues surrounding their exchange's failures,” the welcome message on Facebook reads.
Not a single one of the major players
Moneyweb sought clarification from iCE3 creator Gareth Grobler but had not obtained a response at the time of publishing.
Though iCE3 is estimated to have about 80 000 client accounts, only a small percentage of these are operational, relegating it to a minor role in the local crypto space.
The exchange suspended trade in March, citing an obvious disagreement with Austrian technology partner Merkeleon.com and its affiliate Coinspaid.com.
The firm seems to have committed suicide with its March public declaration of account "discrepancies in bitcoin and litecoin balances" – sparking a stampede of clients for the exit ramp.
iCE3 issued the following announcement in March: "On the recommendation of our legal and auditing teams, we have stopped all deposits and trading." Additionally, we have temporarily halted BTC [bitcoin] and LTC [litecoin] withdrawals awaiting the results of a thorough inquiry and reconciliation. This is intended to safeguard the interests of all clients.”
Clients of iCE3 who have not yet received their funds are worried that their destiny is now in the possession of the liquidators, and they will have to wait years to learn if they can obtain anything back.
iCE3 was established in 2013 and was one of the country's first exchanges. The failure of a crypto exchange in a market that is attempting to create public confidence has alarmed those in the industry.
“It is certainly quite sad to learn about some cryptocurrency exchange being closed or liquidated,” says Farzam Ehsani, creator and CEO of cryptocurrency exchange VALR.
“While I am unaware of the specifics of what occurred, I trust that a satisfactory outcome will be reached for all parties involved.”
