Crypto exchange COSS acquired, but user accounts still locked

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Embattled crypto exchange COSS has confirmed that it has been acquired by a group of investors, while over 200,000 users remain unable to access their accounts.

The Singapore-based exchange locked user accounts at the start of 2020, under the guise of updating systems. At the time, users were told the process would take a month—a deadline which is approaching over the next few days.

The identity of the investors remains undisclosed, as does the purchase price. However, it is expected that the acquisition would allow users to access their accounts more quickly, bringing relief to the difficulties of the lockdown period so far.

In an interview with Decrypt, COSS community relations manager Satyarth Mishra described the investors as effective operators with a proven track record in developing trading technology.

“The new team that has taken over has experience with algorithmic trading and has a team of trading technology subject matter experts,” Mishra said. “Their aim will be to ensure COSS has excellent liquidity for traders (which wasn’t always at its best before), a stable platform that is maintained and improved regularly, and addition of product features which will make the trading experience even better.”

Despite growing unrest from exchange users, Mishra said the technology upgrade was not yet completed and more time would be required: “We absolutely regret the situation where account balances were frozen and apologise for the situation. The wallet infrastructure setup is still being completed.”

The lockdown began on January 8, and understandably, some investors are beginning to feel nervous. Some concerns are emerging around the solvency of COSS prior to the lockdown, with research suggesting the company may have been effectively bankrupt at the time of the lockdown.

Some speculate the firm is preparing to run off with locked user funds, though the basis for these allegations at this stage is unclear.

Speaking on the deal, Mishra said the COSS would move forward with a relaunch and rebrand, which he predicted would help the exchange recover from its current difficulties.

As for those still waiting for access to their accounts, there is no official timeline for sorting this problem.