2gether has been shut down by its Spanish counterpart, making it impossible for users to access their accounts. A customer email informed the platform that this was necessary due to current market situation. The platform also deleted its Twitter account and removed its social media presence.
2gether Reports: Bear Market Woes
Many cryptocurrency exchanges have been affected by the current market downturn. Lenders are unable to refund customers funds, either because they declared bankruptcy or need additional financing to continue operating. The most affected was 2gether, a Spanish cryptocurrency exchange that dates back to the beginning of time. It has blocked customers from accessing its platform.
In an email to its customers, the exchange stated this to them. It explained that:
We are closing the private account service after five years serving the crypto community. Due to the cryptocurrency winter and a lack of resources, we are not able to offer the high quality service that is promised. [with which]Other nearby providers also do it.
2gether is the Spanish crypto exchange that has been most affected by current crypto conditions.
Accounts held hostage
2gether, however, has refused to allow its customers withdraw funds to third-party exchanges or in self-custody accounts. Instead, the company has closed its platform and has informed customers that, to keep their accounts active, each one of them will have to provide the equivalent of €20 ($20.35) to be collected by the exchange to continue operating.
Accounts that don’t have this amount of funds available by June 10th will be suspended, with the cryptocurrencies still available also being liquidated. Asufin Spain Financial Users Association reported that the action will impact 100,000 customers who trusted 2gether to perform their transactions and protect their funds. It is now preparing legal action against all customers.
Regulators might use this situation to push for clearer crypto regulations regarding actions by virtual asset service providers within the country. Pablo Hernandez de Coz (the Governor of Spain’s Bank) highlighted in May the need to establish such regulations quickly so that financial stability is not a possibility.
What do you think about 2gether’s account blockade? Leave a comment below.
Images by CreditShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.