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Message following the bankruptcy filing of FTX

Message following the bankruptcy filing of FTX

Last week, the crypto world was rocked by rumors of an imminent bankruptcy of the international crypto exchange FTX. After the upcoming bankruptcy was announced, reports of a possible hack of the platform also followed.

Several media outlets picked up the news, leading to a lot of unrest in the market. We understand that this also raises questions for you as a customer. In this article, we answer the questions you may have and share all the information that is relevant to you.

Do the events at FTX affect Coinmerce customers?

Within our organization, the security of our customers and their assets is number one. We can therefore report that the events surrounding FTX have no impact on you as a customer.

Coinmerce does not have any involvement with FTX. We primarily hold our customers' assets in cold storage, allowing you to retain control of your crypto assets 24/7. By storing Coinmerce customers' assets in various ways, we always have sufficient liquidity at our disposal.

How did this happen?

The news is still piling up daily, and no one knows precisely what has happened or is about to happen. What we do know is that more and more persistent rumors have surfaced about FTX's poor financial position.

As a result, more and more customers decided to withdraw their money and cryptocurrency from their FTX accounts as soon as possible. It soon became apparent that this was no longer possible because FTX no longer held these funds. Customers' money was presumably used to pay other partners.

Binance indicated an attempt to take over FTX to prevent FTX customers from losing everything. Unfortunately, it soon became apparent that there would be no takeover.

In the days that followed, the market remained unsettled, and yet another news emerged: the FTX platform was allegedly hacked, and over a billion worth of funds were stolen. Investigations are still ongoing, so it still needs to be clarified if it is really a hack or if funds are being extracted from within the organization itself.

As a customer, what can I do to avoid ending up in a similar situation?

FTX was an international trade show, part of which was based in the Bahamas. In many places worldwide, there is little or no regulation to ensure that crypto companies comply with the law and cannot engage in fraudulent acts.

We advise all Dutch crypto investors to only deposit your funds with companies that fall under this regulation. Coinmerce has communicated from the beginning of its existence that transparency and reliability are the most important points. Therefore, this is the reason we are registered with De Nederlandsche Bank.

Furthermore, we have a number of other additional measures to ensure the security of your funds;

  • Your funds will not be used for activities if you do not give your consent.
  • Most of our users' cryptocurrency is stored in cold storage wallets. Should the platform be hacked, these cryptos are safely stored in an offline environment.
  • We have a dedicated department working full-time to continuously improve the platform's security. The security is also periodically tested by external cybersecurity specialists.

    Do you have further questions about our security measures or the impact of the news surrounding FTX on the crypto market? Our staff is ready to assist you.

    Email: [email protected]
    Phone number: +3197010286028