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CEX.IO is a private company which was established in 2013 with headquarters in London, UK. The services initially rendered by them included Bitcoin cloud mining and Bitcoin exchange, contributing up to 42% of the mining power in 2014, using Ghash.io mining pool.
By 2015, because of low Bitcoin price and low profitability involved in mining, CEX.IO, suspended all mining operations and currently operates only as a Cryptocurrency exchange. It not only exchanges Bitcoin but also Ether, Bitcoin cash, Bitcoin Gold, Zcash, and Dash all in 2017. Therefore it is fair to say they are cryptocurrency giants.
Services offered by CEX.IO
- This Bitcoin exchange offers services such as buying and selling of Bitcoin using payment methods such as MasterCard, Visa, cryptocurrency or even bank transfer.
- It also supports Bitcoin margin trading and has over 700,000 users and over 1.4 million Bitcoin traders, while also providing strong security (including full data encryption) for its users.
- Providing its services in about 99% of countries around the world and about half of the USA, where it is registered with FinCEN, IO follows legal compliance including Anti-money laundering ( AML) and know your customer( KYC) policies.
- IT also offers cross-platform trading, advanced and transparent reporting and boasts of having a high liquidity, which means the quick execution of buy or sell orders.
What then went wrong?
Quite uneasy to put down, is the reason why the users of this seemingly booming bitcoin exchange platform are unsatisfied, scared or even grieved.
With the level of activity involved in this exchange, one would expect lower prices of Bitcoin and a high recommendation by its users, buy the reverse seems to be the case. It offers higher prices than it should for an exchange of its nature, even up to a $100 more. Although this is a big drawback, it is not the major challenge.
Recently, many of its users are complaining of very slow confirmation of sell orders (up to 14 days) and in some cases, sell orders are confirmed on the exchange(meaning the exchange claims to have sent the money) but no money is transferred to the user’s account, quite contrary to their claim of fast order executions. Many questions are being asked right now, but the support service is also reportedly unresponsive or insensitive.
CEX.IO representatives have admitted their shortcomings and stated that this issue is caused by an ongoing security improvement and an increased influx of users. Some of the claims of loss of money by some of their customers are also fraudulent, as some have ceased this opportunity to lay false claims. So we understand this response.
Users’ response – Reddit
Users on Reddit have mixed responses, because it is important to mention that these issues occur to the users of some geographical areas alone. For instance, while a user complained of an unverified account even after a month of waiting, some users at the same period have experienced as fast as 20 minutes verification time.
Many users have noticed delays in sell orders and outright lack of payment of sell orders to other users (even after it shows that orders have been completed), have decided not to sell until the hassle ends. Other users have also decided to convert their Bitcoins to other currencies on the platform and then selling the other currency.
Many other users are tired of waiting and have given up any hopes of getting paid for selling their bitcoins on CEX.IO. With the way things are, they may have a very bad reputation, even after this issue is fixed.
What should you do if you have a claim?
Panicking is never going to help, never has and never will. You should have proof of transaction concerning selling your Bitcoins to CEX.IO, like screenshots, this is because the name is bound by serious legal commitments and is mandated to be transparent. If they have high user activity as they claim, then it is just a matter of time before this is over.
If you have Bitcoins with them currently, do not sell them, just wait. They are still one of the biggest Bitcoin brokers, with a friendly user interface, don’t give up following up on your sell orders.