South African Crypto Exchange Ceases Operations Less Than a Month After Suspending BTC Withdrawals – Exchanges Bitcoin News

A South African cryptocurrency exchange, Ice3x, announced on April 6 that it would permanently cease operations less than a month after the Bitcoin and Litecoin withdrawals were suspended. Ice3x, one of the oldest crypto exchanges in the country, said the decision came after lawyers advised the firm to initiate liquidation proceedings.

“Extreme Pressure”

In a statement sent to customers on April 6, the exchange claims it has “processed the withdrawals that have already been submitted” and therefore “all withdrawals from the platform have been disabled”. However, in the same statement, Ice3x urges frustrated customers to remain calm and “respectful”.

The statement goes on:

Please note that employees are currently under extreme pressure and can only provide help if instructed to do so. We understand your frustration, but please be respectful when communicating with the service desk staff.

According to a statement, Ice3x should “provide further details and the next steps” on April 7th. At the time of writing, there were no new updates on the exchange’s website.

Liquidity problems

According to a report from a local crypto media company, Ice3x’s March 16 announcement may have been triggered by liquidity issues the exchange had before trading ceased. To support this theory, the report quotes an unidentified and desperate Ice3x customer who claims that when Bitcoin lost its value, “the stop-losses of his order were not executed at the desired trigger price, but were executed much lower”.

According to the local report, this problem indicates “a lack of liquidity on the platform that is required to buy up stop orders of this type”. At the time of writing, Ice3x’s founder and CEO Gareth Grobler had reportedly not responded to requests for more information.

The information on the exchange’s website shows that Ice3x released 14 updates after the exchange initially reported discrepancies in the balances. In its last update, the exchange urges customers “not to create multiple tickets” saying this “only adds to the workload and the number of tickets the team has to go through, which significantly slows operations.”

What do you think of Ice3x’s decision to cease operations? Let us know what you think in the comments section below.

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