It's Official : Bitcoin Trader Closes Operations, Plans to Declare Bankruptcy in Panama！
Bitcoin Trader has made an official update on the closure of their operations.
Signed by John Carley, the letter explains that their bitcoin wallet was hacked and emptied after exchanging fiat holdings to bitcoin and transferring the entire holdings to their wallet.
The letter reads that while Mr. Carley personally opposed to undergoing a proof of solvency, they decided to go with the audits 'for the sake of a few dozen small and medium investors'.
We're not sure if this is really what happened (doubtful...), or if they were just another ponzi/scam from the beginning.
However, we know for sure that Bitcoin Trader is now officially closed along with investor's money, including our $40!
This is the first time we're encountering an incident like this (companies closing doors with our money), and it's very shocking. It only reinforces us the importance of diversifying when choosing cloud mining companies and starting with small amounts when testing out new services.
We would like to continue to test new cloud mining companies with our own money, but testing out new services in offshore tax haven jurisdictions (like Panama) may have to be reconsidered.