cryptovest.com
UK-based cryptocurrency trading operator Dooga Ltd, working under the trademark Cubits, has entered administration, the company said on Tuesday. At the moment, it is unclear what the situation with client funds is, though several customers are accusing Cubits of locking their accounts.
The platform began insolvency proceedings after a “serious criminal act” in February this year Cubits said. The company explained that three of its clients and a Malta-based payment processor, allegedly colluded with fraudsters to steal Bitcoins worth of 29 million euro ($32.9 million). At that time, the average price of BTC was around $10,000 per coin. Cubits had obtained two garnishee orders against the Maltese firm and filed arbitration proceedings for approximately 35 million euro ($39.7 million), mostly coming from the three clients. The company disclosed neither the name of the payment processor nor the institution that had granted it with the orders.
“Dooga has never received the equivalent in fiat from the payment processor responsible for carrying out the transaction [to the three clients]. Immediately after becoming aware of the act, Dooga has informed the responsible authorities in the UK, Malta and China as well as in Germany and has filed several criminal complaints,” Dooga explained in a press release.
On Monday Dooga brought two administrators, Steve Parker, and Trevor Binyon, both from Opus Restructuring and Insolvency, to run Cubits. On the same day, Cubits announced on Twitter temporary maintenance that that had suspended all of its services.
https://twitter.com/CubitsHQ/status/1072223324946735105
Parker and Binyon would work with individuals and companies that owe money to Cubits and to whom the trading operator owes funds. Dooga did not provide any details about the fate of client funds.
“Our goal is to achieve the best outcome for creditors generally at the earliest possible date. Dooga’s current position is secure, investigations are proceeding and we will be writing to creditors, formally, this week,” Parker said.
Cubits, founded in 2015, was offering buying, selling, and storing of cryptocurrencies, among them BTC, Litecoin (LTC), and Bitcoin Cash (BCH), according to a Google cached version of the Cubits website, taken on Saturday at 13:39 UTC. In a separate development, Cubits’ payments coordinator Eloise Debono has endorsed the famous Bulgaria-based Ponzi scheme OneCoin on LinkedIn.