The fall in the crypto market has endured for a while now as not only individual investors are getting liquidated. Every now and then, there is always news of a crypto exchange closing down due to its inability to continue operations. This situation largely contributes to the gloom in the crypto market as investors scurry to withdraw their funds.
The effect of poor market conditions is so colossal that it is not limited to the United States. Crypto-based firms in European countries are also affected by the declining market situation. However, this does not leave out the fact that poor management may also lead to the closure of some of these crypto exchanges.
Dasset, a crypto exchange headquartered in the Netherlands, suddenly announced it would be closing down due to its inability to allow customers to withdraw their funds from the exchange.
Initially, it was quite puzzling that the crypto exchange would deny users their funds. But they finally clarified the situation through their representative, who said the crypto exchange liquidation would be starting soon.
Apparently, some of the exchange's funds have been mismanaged, and they can't afford to allow customers to withdraw their funds anymore. So they must sell some of their solid assets to repay their debt.
On Aug.14, local media outlet The Herald reported on the exchange’s troubles. Dasset customer complaints have been going on for so long, as they could not withdraw. In the initial stages, Dasset made an excuse for the reason behind the inability to withdraw funds.
Dasset said the crypto exchange couldn't find a banking gateway after its previous provider stopped working with the exchange in January 2023. This statement was issued by the company’s CEO, Stephen Macaskill while speaking to the press.
However, he also mentioned the company would be voluntarily liquidating to raise funds to pay off its customers. Despite making these statements, the crypto exchange’s social media handles haven't said anything concerning the liquidation at the time of writing.
The Liquidation Process
Although the liquidation news hasn't appeared on their social media channels, it has gone live on their website. Whenever a user visits the website, it redirects them to the page of law firm Grant Thornton’s announcement about the crypto exchange liquidation. The website clearly states that the crypto exchange can no longer meet customers' demands and has to appoint a liquidator.
"Dasset’s management says a significant reduction in asset values and trading levels impacted its ability to trade profitably. It was determined the appointment of liquidators was in the best interests of all stakeholders," the message says on the website.
The liquidator Grant Thornton says they plan to contact customers and suppliers affected by the new development and communicate the next steps to them. However, they said they focus mainly on" securing and protecting."
Now it is obvious that the crypto exchange is liquidating; the next question is what lies ahead after the liquidation. In countries like the United States, most crypto exchanges taking this route are mainly sued by the Securities and Exchange Commission and its customers.
Ian Woolford, the Reserve Bank of New Zealand’s director of money and cash, publicly said in June 2023 that the country still doesn't need a crypto regulatory framework. Since many cryptocurrencies are classified as assets, the legal steps will follow the requirements under property laws.