In line with a recent ‘press-release‘ published, United Kingdom-based crypto payment platform named ‘Cubits’ has filed for administration following a unexpected outage that locked customer funds.
The act of filing for administration means an insolvent company has appointed an external administrator so as to act on behalf of its creditors.
Cubits, the trading name of legal entity under ‘Dooga Ltd.’, claimed it had lost funds priced around $32.8 Mln to a fraudsters in Feb 2018 that it was unable to reclaim.
Now, Dooga has brought in the administrators “to work with people who owed money by the firm and to gather monies that are owed.”
“Our goal is to achieve the most effective outcome for creditors typically at the earliest doable date,” one in every of the 2 recently appointed administrators ‘Steve Parker’ commented within the release, continuing:
“Dooga’s current position is secure, investigations are continued along with the writing to creditors, formally, this week.”
Both of Opus Restructuring & In Insolvency, Parker is joined by Trevor Binyon to figure as “Joint Administrators” for Dooga.
Cubits users had raised the alarm recently this week on Monday when the platform’s web-site went offline. At the time, the company’s Twitter account ‘claimed‘ “scheduled maintenance” for the period of time.
The website thereafter went from claiming services would “be right back” to a generic error message on 12th Dec.. the web-site currently shows a ‘duplicate‘ of their release explaining the administration procedure.
Some individuals reacted without emotion, claiming they’d already been waiting many weeks to withdraw funds.
Opus Business, currently answerable of Cubits’ administration, has not versed a call for participation to comment on users barred funds by the reporting time.
The Feb. episode focuses on 3 Chinese traders who allegedly purchased Bitcoin [BTC] on Cubits via Malta-based payment processor Pay Secure on-line Ltd, often called ‘PaySec’.
The company allegedly never paid Dooga the processing dues, leaving the corporate with debts totalling around $39.7 Mln. Ealier in August, a Maltese court upheld a confiscate order (third party order) filed against PaySec, that Dooga brazenly claims “colluded” with the traders.
“Since Feb, Dooga has made every doable effort to recover these funds,” the press release further added:
“Unfortunately — contrary to expectations — these efforts are unsuccessful up uptil now.”
In a different opinion, an analysis of Dooga’s activity on LinkedIn discovered its payments organizer ‘Eloise Debono’ is an ‘endorser‘ of notorious alleged ponzi scheme ‘OneCoin’.
Its head of crypto business, Max Krupyshev, left the corporate in Nov. before its monetary woes became public.