CEO of Zimbabwean Crypto Exchange Loses Bitcoin Cold Wallet Password

CEO of Zimbabwean Crypto Exchange Loses Bitcoin Cold Wallet Password

The founder and CEO of a Zimbabwean cryptocurrency exchange has reportedly lost the password to one of the exchange’s Bitcoin wallets. If true, this would mean that the CEO has lost access to dozens of user Bitcoins.

Zimbabwean crypto exchange CEO loses wallet password

This news was first reported by the local daily news outlet iHare. According to the report, the CEO of Zimbabwean crypto exchange Golix – Tawanda Kembo – lost the password as early as in May of last year.

Furthermore, this story supposedly became public following that local regulators took a closer look at the exchange. Specifically, financial regulators at the Reserve Bank of Zimbabwe are said to have ordered to exchange to shut down its operations after violating local regulations.

After this, the Golix cryptocurrency exchange reportedly shut down all of its communications with customers, Furthermore, a large portion of the exchange’s customers are also said to have been unable to retrieve their crypto holdings from the exchange.

Following this, Kembo came forward in a recent guest post, answering some of the allegations regarding the exchange. According to Kembo, Golix has not had any widespread problems with customer withdrawals.

Instead, the CEO said that “99% of the people who have attempted to make a withdrawal on Golix have seen it go through without a hitch“. Moreover, Kembo says that any potential problems came from the remaining 1% minority.

Crypto demand strong in Zimbabwe

Nevertheless, Kembo did not deny that he had reportedly lost the password to one of the company’s Bitcoin cold wallets. Instead, it would appear likely that Kembo has indeed somehow lost the password to one of the company’s wallets, which is said to contain 33 of customers’ Bitcoin.

If this information is accurate, it would mean that the inaccessible wallet is worth approximately $305,000. However, Kembo did refer to the event, saying that reports regarding it have taken the whole situation “out of context”.

However, this is all especially notable seeing as the government in Zimbabwe has had a mixed stance towards Bitcoin and crypto. In July of this year, the regime decided to ban the use of foreign currencies in the country.

Moreover, this led to a dramatic spike in Bitcoin peer-to-peer trading. Furthermore, some reports say that Zimbabwean citizens have been turning to services such as Western Union, Paypal, and Moneybookers in order to trade Bitcoin outside of the country. 

Additionally, sources also say that the demand for crypto is so strong in the country that numerous citizens are paying premium prices on order to obtain crypto.