Canadian owned and operated Bitcoin exchange Vault of Satoshi has announced their intentions to close the exchange as of February 5th 2015. As the timing of the announcement coincides with the current suspension of the Bitstamp exchange, VoS has stated that the decision to close the exchange has nothing to do with insolvency or stolen funds but merely a change of direction for the founders who wish to switch their focus to a non-Bitcoin project named TurboFlix. The announcement reads:
Vault of Satoshi will be closing on February 5th, 2015. Although new deposits will no longer be accepted, rest assured, you will have plenty of time to finalize any trades and withdraw any outstanding funds with all of the convenience and expeditiousness that you’re used to. Please ensure that all of your withdrawal requests are submitted by February 5th.
We expect there will be some speculation as to why the Vault is going to be sealed forever, and we’d like to reassure the community that it has absolutely nothing to do with insolvency, stolen funds, or any other unfortunate scenario. To this day we are proud to have run the first full proof-of-reserve exchange in the industry, with strict compliance and security regimes. Our decision stems from opportunities presented by a new business that has forced us to reexamine our priorities.
Our founders and team of developers began work on a new, non-cryptocurrency project about 6 months ago, which has since become quite successful. We are forced to make a choice on where to expend our efforts, as we simply do not have time to continue operating both businesses. We feel splitting our focus would be a disservice to the customers of Vault, so although our competitors may lack some of the features, currencies, and innovations that Vault brought to the Canadian market, they will serve you well for your basic exchange needs.
We are still true-believers, and think Satoshi Nakamoto has set in course something that will change the world for the better. Thank you loyal Vault customers for joining us on one of the most exciting adventures of our time! There’s no doubt that this is just the beginning, and we will continue to watch from the sidelines as history unfolds, with Bitcoin becoming more understood, accepted, and appreciated every day.
The Vault of Satoshi Team
The VoS exchange first launched in October of 2013 but ceased US operations a mere six months later. The decision to block American customers coincided with VoS's parent company – Global Cryptocurrency Solutions Inc – registration as a licensed Canadian MSB. The following April, VoS was once again made accessible to Americans but only to those from the State of South Carolina. As it now stands, VoS's MSB is set to expire at the end of April 2016.
The decision to shutter the exchange instead of finding a buyer and the focus on the non-Bitcoin project named TurboFlix is a strange one. TurboFlix is a service which enables users to bypass Netflix's regional libraries, something which Netflix has begun to crack down on as it moves into new markets such as Australia. Given these two things, one could be forgiven for calling into question the veracity of the reasons stated by VoS for the closure of the exchange.