Mar 2016 - CoinTrader/NewNote Shuts Down - $1.5m? (Canada)
"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.”
Further Analysis
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.
More Cryptocurrency Exchange Hacks/Scams/Frauds
Shapeshift Exchange Hack > > < < Cryptsy Withdrawals Closed/Bankruptcy
Sources/Further Reading
Canadian Bitcoin Exchange CoinTrader Shuts Down (Feb 5)
Bitcoin exchange Cointrader hacked, taken offline | Bitcoin News (Feb 5)
Newnote Financial Corporate Update (Feb 5)
Bitcoin Exchange Cointrader Shuts Down After Alleged Hack - CoinDesk (Feb 5)
Cointrader.net hacked :( : Bitcoin (Feb 6)
Was Cointrader hacked? : Bitcoin (Feb 6)
Bitcoin Exchange Cointrader Shuts Down After Alleged Hack (Feb 6)
Canadian Bitcoin Exchange CoinTrader to Go Public in $1.18 Million Deal with Newnote Financial | Finance Magnates (Feb 6)
Attendees visit the Cointrader Exchange Inc. booth during the... News Photo - Getty Images (Feb 6)
Cointrader Exchange Inc - Bloomberg (Feb 6)
Cointrader (Vancouver) - AirBitz (Feb 6)
Newnote Financial Acquires 100% Interest in Revenue Generating Cointrader.net Bitcoin Exchange, CoinZero Point-of-Sale System and ATM Machines in London & Tokyo | Kitco News (Feb 6)
Newnote acquires Bitcoin exchange Cointrader.net, other assets for C$1.5 mln | CNSX:NEU (Feb 6)
Newnote sued by CoinTrader.net customers (Feb 6)
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