Brazilian Exchange Foxbit to Process Withdrawals during Extended Downtime


As recently covered by CCN, Brazil's biggest cryptocurrency exchange Foxbit recently went down and dropped a total of 30 bitcoins due to a bug that allowed users to withdraw their bitcoin balances double. At the moment, Foxbit claimed it would be back online by March 14, but now warned that the platform will be offline until March 26.

Throughout a YouTube livestream, the cryptocurrency exchange's COO Guto Schiavon and CEO João Canhada revealed users will have the ability to withdraw their funds throughout Foxbit's downtime. Withdrawals, according to the executives of the exchange, will be processed manually.

Feb Schiavon, Foxbit will have 40 employees working on client support to ensure all requested withdrawals are processed. The exchange will only allow users to draw their entire balances.

To make it up to its customers, the exchange will process withdrawals without charging fees. Throughout the YouTube livestream, several users questioned Foxbit's health, to which its creators responded (roughly translated):

«The platform will return, but it isn't in our interest to maintain any user's balance, be it in real orbit coin. It is a solvent company and there is not any problem if all users make withdrawals.»

They further said that the «power of trades isn't shown by their lack of failure, but by their ability to come back.» Foxbit's executives added that they'd improve their communication in the future, which users should not use the exchange as a wallet. Instead, they advised them to store funds in a wallet so that they'll be responsible for their own money.

Other cryptocurrency exchanges using Blinktrade, a business that allows exchanges to develop their particular platforms without hiring a programmer, have also been down since the company is reportedly addressing an error in its database.

Pakistani exchange Urdubit used Facebook to reveal it will not return until March 18 due to Blinktrade, while Vietnamese exchange VBTC claimed that it could be back online anywhere between now and March 18.

Notably, according to local book Portal do Bitcoin, bitcoin trading volume fell by about 50% in Brazil shortly after its biggest exchange went down. During Foxbit's incident, users seemingly prefer to wait it out instead of flocking to the market's competitors.