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UK based crypto exchange TradeSatoshi has been operating since 2015 until the 20th of February, announcing its shut down. Negative reports from users unable to withdraw their funds are appearing on every social platform.
TradeSatoshi’s official announcement explained that they are no longer economically feasible to provide the required security, support, and technology. Deposits appear to be disabled and users are reporting that they are required to pass additional KYC after already being approved on the exchange.
People who held their crypto on the exchange must withdraw it before 1st of March 2020 00:00 UTC
Financial problems or regulatory problems?
Since the adoption of the AML5 Directive, many exchanges have announced that they will either withdraw from Europe or close their platforms permanently. With TradeSatoshi we are witnessing another exchange’s closure. It is still unknown what caused the shutdown – whether it is due to the cold wallet being lost or due to regulatory pressure.
Crypto exchanges across Europe are under scrutiny to strengthen the monitoring of their users’ transactions and add additional KYC requirements. This, in turn, requires more financial and human resources needed for the exchanges to improve their anti-money laundering procedures. Other small exchanges like TradeSatoshi also might not meet the new requirements due to the high costs involved.
Users experiencing withdrawal problems
TradeSatoshi shows suspicious activity by disabling withdrawals to users and requiring them to provide additional personal information without any explanation. There are just 10 days for users to withdraw their funds from the exchange. What will be done to the funds of inactive users who will find out about the accident in the future is unknown. The exchange is set to stop operations on 1st of March 2020.
Amongst the many fake TrustPilot reviews, TradeSatoshi has, the genuine users’ reports reveal a lot of poor practices shown dating back to early 2018.