Poloniex Disabled the ZCash Wallet Five Days Ago, Users Still Waiting for an Official Explanation

It appears as if the Poloniex exchange is dealing with some issues yet again. More specifically, the company has disabled a few cryptocurrency wallets without any prior warning or further explanation. One of those markets is ZCash, as its wallets have been disabled since July 7th. So far, no one knows exactly what is going on. Poloniex claims the network is experiencing issues as we speak.

Is Poloniex Preparing an Exit Scam?

For the longest time now, people have been rather wary of the Poloniex exchange. That is only normal, as the cryptocurrency exchange has seen its fair share of issues. Ranging from temporarily disabling markets in missing deposits and “alleged” DDOS attacks, the past year has not been all that great for this exchange. This also worries a lot of people as to how secure their funds are. This most recent issue has cast another dark shadow over this platform, to say the least.

More specifically, things started to go awry for Poloniex almost a week ago. On July 7th, users started complaining about the exchange being slow when it comes to crediting ZEC deposits. Not too long after those complaints started to surface, the exchange suddenly disabled the ZEC wallet altogether. This means users are no longer able to deposit or withdraw ZCash from the exchange. Interestingly enough, the trading market is still active, yet it remains a bit unclear how long that will last.

It did not take long for rumors to start surfacing regarding how Poloniex is preparing to pull a major exit scam. Considering the company controls millions in ZEC on behalf of users, they would be in a prime position to do exactly that. Then again, there are other cryptocurrency markets which generate a lot more volume, which they could hold hostage and simply crash the price if they wanted to.

The troubling part is how there is still no word on resuming the ZCash wallet service on Poloniex anytime soon. Right now, there is no official ETA for this service, which is very worrisome to say the least. Being unable to provide such a vital service to users without an official explanation is not a good sign. Poloniex claims the ZCash network suffers from issues, which could affect both deposits and withdrawals. No other exchange has disabled ZEC for this specific reason, though, which makes this explanation less than credible.

As one would expect, disabling the ZEC wallet has cost people a good amount of money already. A lot of users fear their pending deposits will be lost forever, which would – allegedly-  not be the first time where Poloniex is concerned. Interestingly enough, the ZCash developers are also unaware of any issues affecting the network or any wallet issues being present right now. Poloniex is definitely up to something, but no one knows what they are playing at exactly.

One thing which could explain this situation is how Poloniex is upgrading their ZCash wallet to the newest version. Then again, this wallet has been out for some time now, thus it is strange that they are waiting so long to pursue this upgrade. Users are advised not to make ZEC deposits until these issues are resolved, although this situation may last for another few days or weeks. Luckily, users can still exchange their existing ZEC Poloniex balance for Bitcoin and cash the funds out that way without issues. Unfortuantely, this will put a lot of selling pressure on the ZEC price.

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11 Comments

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