A LAW FIRM claiming to represent Bitsane, an Irish-registered cryptocurrency business, has said it has launched an internal investigation after the site went offline and users have said they are unable to access their funds.
Lithuania-based law firm Baltesco told Fora that it is representing Bitsane and Aidas Rupsys, one of its founders and its chief executive.
Bitsane is registered in Ireland, as a business under the name Bitsane LP, and provided a cryptocurrency exchange service. Around 17 June, Bitsane went dark with users unable to contact it or access their funds held in the exchange.
One Bitsane user, who is based in the US, said that he has lost access to $7,000 worth of cryptocurrency that he had stored in the exchange.
In a letter to Fora, the law firm said it is “collecting relevant information that cannot be disclosed at the moment due to an internal investigation”.
According to the law firm, Rupsys claims he has not accessed any funds that were held on Bitsane because he claims that he was “not connected to the bitsane.com platform”.
The letter added that there has been a breakdown in communication among some senior staff in the company.
It declined to comment further on the status of cash flows on the Bitsane platform, citing the General Data Protection Regulation (GDPR).
Bitsane LP was registered in Ireland in 2016 by Rupsys. Baltesco said that Bitsane registered its business here as it had the “most favorable tax base in the European Union”.
Forbes first reported on the issues at Bitsane last week. Users claimed they had received emails in May saying withdrawals were “temporarily disabled due to technical reasons”.
Around 17 June, Bitsane’s website and social media accounts were taken down while emails bounced back.
The exchange allowed users to buy and sell cryptocurrencies like bitcoin, ethereum and XRP. According to an archived version of the Bitsane website, the exchange had over 246,000 registered users and 25,000 daily transactions.