$1 500 000? USD

MARCH 2016

CANADA

COINTRADER.NET

DESCRIPTION OF EVENTS

"In addition, the Company has discontinued the Cointrader.net Bitcoin Exchange effective immediately. Rising maintenance costs and lower trading volume attributed to an increase in competitors within the Canadian market space have been factors in its closure. Users of Cointrader.net with balances remaining are being settled and accounts closed."

 

“I had funds in the exchange and have been nagging Newnote repeatedly since it occurred. Intermittently they respond, and generally just blow me off. If you read their ToS, there's some verbiage that (if upheld) seems to indicate a 12-month "limitation period" on any claims - the deadline for which is rapidly approaching. Possible they're trying to lay low in hopes the majority of users don't do anything about it.”

The details seem vague in this case. The company failed to complete an annual report for 2015. When it shut down in 2016, "an internal audit showed “a deficiency of bitcoin" in company wallets" which suggests improper storage and security practices. As of 2017, official statement was that NewNote owed nothing to creditors because the issue was with CoinTrader. Nobody knows the exact amount lost, however the company was purchased by NewNote for $1.5m.

Sources And Further Reading

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