Venezuelan Crypto Exchange CoinCoinX ‘Temporarily’ Halts Operations – What’s Going On?

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By Degen Lipsa

A token decorated with the Bitcoin logo and the colors of the Venezuelan flag rests next to several $100 bills.
Source: Angelov/Adobe

The Venezuelan crypto exchange CoinCoinX says that it has “temporarily stopped” operations amid reports users cannot make withdrawals on its platform.

It is a move that has reportedly left “thousands” of customers unable to access their funds.

In a tweeted statement, the exchange said users’ funds were “safe” and “protected,” blaming the “pause” on the “current regulatory situation in Venezuela.”

The exchange claimed it was “temporarily” halting its “operations” pending regulatory approval, adding:

“The funds of our users are protected, secured, and available for use as soon as we obtain the necessary regulatory approval that will allow us to let them make transactions as normal. We understand the concern and worry caused by this situation. And we appreciate your patience.”

CoinCoinX blamed the “high costs of maintaining the platform, infrastructure, development, security, and [its] workforce” for the move.

But some have claimed that the firm has been hit by a crackdown on Bitcoin (BTC) mining.

The firm wrote:

“It is impossible for us to continue providing the services that we usually provide without risking [customer] funds and accumulating liabilities from our suppliers.”

Many of CoinCoinX’s products were backed by its sizeable domestic mining operations.

The media outlet Criptonoticias reported that the government-run PetroApp has also been experiencing “problems on the platform for almost a month.”

Users of this platform are reportedly claiming their funds are “frozen with no way to withdraw them.”

Venezuela’s Crypto Crackdown – Is Crypto Exchange the Latest Victim as seen for CoinCoinX ?

A wider crypto crackdown appears to be sweeping Venezuela.

The crackdown is part of a probe into alleged government corruption.

SUNACRIP, the state crypto regulator, has been the subject of a major investigation into misappropriated state funds.

Its former head, Joselit Ramírez, has been fired and jailed.

Several leading SUNACRIP officials have also been arrested.

Eagle-eyed Twitter users also noticed that the logo of the Petro (PTR), Venezuela’s state-owned, oil-backed cryptoasset had been removed from the SUNACRIP headquarters.

The SUNACRIP sign has also been removed, a possible indication that the government will move to disband the regulator.

A crackdown on crypto mining has also seen miners all over the country surrender their rigs to police officers.

Venezuela had previously sought to promote crypto-powered business and state-owned companies have been actively using crypto as a payments tool in international trade.

A deep political row with Washington has seen the USA attempt to freeze trade via international economic sanctions.

The government believes that SUNACRIP officials may have stolen up to $3 billion worth of crypto from state-run firms.


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