UK-based cryptocurrency trading platform Cubits' executives has officially announced that the company went bankrupt following the criminal act of fraud and hacking of their systems in February 2018. All efforts to recover the lost funds - $33 million in clients' money - have proven unsuccessful since.
Hence, Dooga Ltd. whose trading name is Cubits, has become insolvent and appointed external administration to act on behalf of creditors and "work with those who are owed money by the Company and to collect money owed."
The firm's December press release states that Dooga made every possible effort to recover the funds since February, but contrary to expectations, all efforts have failed.
A Mess At Hand
Company officials have had a hard time coming to terms with the gravity and reality of situation, facing hundreds of furious users - who were being denied withdrawals for weeks - left stumped by conflicting messages...
...On December 11th, Cubits' Twitter account and the official website informed users of the alleged maintenance and that it will be "right back," followed by the 500 error message that appears when the website is down.
Finally, a tweet revealed that the mother company has in fact entered administration. To make matters worse, head of crypto business within the company, Max Krupyshev, left in November right after the financial issues went public.
Dooga's newly appointed administrators have a lot to clean up, as they say their only goal right now 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,” said one of the administrators, Steve Parker (the other one is Trevor Binyon, also of Opus Restructuring & Insolvency).
Controversy Deepens
The fatal ruse occurred last February, when a certain three Chinese traders bought Bitcoin on Cubits, using PaySec (Malta-based payment system) which never paid Dooga the fiat money, creating a total debt of $39.7 million. A decision made by Malta's court in August that upheld the third-party order against PaySec colluded with the traders, according to Dooga's claims.
But Cubit's woes do not end there:
The company's payment coordinator, Eloise Debono, has been unmasked as an adherent of the infamous ponzi scheme OneCoin whose malpractice caused a sea of red flags from diverse authorities all around the globe. This was revealed through a senior management's private investigation of Debono's LinkedIn activities.
In an article in 2016, she bizarrely wrote: "OneCoin uses one centralised exchange called OneExchange, where there is a fixed rate for buying and selling. I personally think this is more secure and less volatile."
Source:
"Crypto Platform Cubits Begins Insolvency Procedure After Alleged Hack, Locks Users' Funds", William Suberg, cointelegraph.com, December 12, 2018.
"Cubits is Bankrupt and Witholding User Funds As OneCoin Ties Exposed", Esther Kim, bitcoinist.com, December 12, 2018.
barsalou6 3 years ago
Wow wow 33 million that's a good bit of scratch there. I'm still upset about the dream market appearance what do they say something with their servers went down and a lot of accounts Bitcoin at disappeared not everybody's just to a certain percentage of accounts Bitcoin at the times. T Hi-Fi remember and possibly not me...
Wow wow 33 million that's a good bit of scratch there. I'm still upset about the dream market appearance what do they say something with their servers went down and a lot of accounts Bitcoin at disappeared not everybody's just to a certain percentage of accounts Bitcoin at the times. T Hi-Fi remember and possibly not me personally but I knew a guy who had like at least a quarter of a Bitcoin in their account when it mysteriously went empty and they said they would make every effort to get a return but it didn't I went on blockchain wash my money I mean watched persons coincidence I just moved from the account they were into a different one along with many other users I'm sure either way it's horrible and they should do something about it are to prevent it from happening everywhere. There's pros and cons to everything with Bitcoin yeah that's what's the best bear
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cheztwins 4 years ago
omg. I bet all the users that lost all that Bitcoin are f8&$@ng pissed. I know I would be. it seems like there should be better regulation of these companies that before they get to handle all that money they need to pass some sort of rock solid type of test.
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IWILLPLAY.online 4 years ago
I would be interested to know what the current situation is with Cubits. Will the accounts be unlocked again? I was very impressed with Cubits and was willing to recharge my account before closing to use it for future Bitcoin transfers. If anyone has any information... post it.
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fredos386 5 years ago
Cubits going down changed bitcoin gambling for me in a big way since it was cubits that allowed bitcoin players to deposit and play in fiat currencies instead of bitcoin currency. The reason why it's a significant loss is that many providers do not offer their slots in bitcoin currency meaning bitcoin players lost a big...
Cubits going down changed bitcoin gambling for me in a big way since it was cubits that allowed bitcoin players to deposit and play in fiat currencies instead of bitcoin currency. The reason why it's a significant loss is that many providers do not offer their slots in bitcoin currency meaning bitcoin players lost a big chunk of the slots avaible and it is probably hurting the casinos a lot since just looking at myself i lowered a lot my play on bitcoin casinos and moved back in part to regular casinos to have access to all the providers. Hopefully another system will show up to replace cubits?
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nirvana 5 years ago
glad i never used them
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CBG 5 years ago
so many hacks in crypto world . still cubits efed up big time here
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bongo 5 years ago
Wow, so glad I stopped using them a long time ago. I had no idea things had gotten so bad.
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BralasLT 5 years ago
Absolutely terrible. I guess this is part bad fortune part their own fault, especially if they meddled with OneCoin.
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