Bitspark Abruptly Announces Its Closure Amid Restructuring Issues

Bitspark, a blockchain remittance startup based in Hong Kong, has abruptly announced its shut down, citing internal restructuring issues.

On February 3rd, George Harrap, the co-founder and CEO of Bitspark, officially announced the platform’s closure and all its services till March 4th, 2020.

As indicated in the statement, Bitspark users will now be able to withdraw their digital currencies from February 3rd to March 4th as the platform’s functionality will stay intact over the period. After March 4th, 2020, the account logins will stop working for a period of 90 days, with users being able to withdraw their assets via Bitspark customer support.

George Harrap underscored that the company’s unexpected shut down comes in spite of the ‘astounding performance’ that Bitspark has seen since the release of its latest settlement service Cash Point in 2019. As indicated by the CEO himself, the platform saw a 400% month-over-month growth in the wake of releasing the product.

The Political Turmoil

Co-founded by George Harrap and Maxine Ryan in 2014, Bitspark developed as a significant blockchain-fueled financial services company for the Asia-Pacific area, serving nations like Indonesia, the Philippines and Vietnam.

Bitspark’s shut down comes a month after its co-founder Ryan reported her intention to resign from her position as COO. As indicated by the official declaration, Ryan’s choice caused inward restructuring issues that have been exacerbated by the coronavirus flare-up in China and anti-government dissents in Hong Kong, which drove Bitspark to close the firm –

“Unfortunately due to internal restructuring that hasn’t worked out, and a decision taken by shareholders internally, we have made the decision to close our doors. While the HK protests and now virus epidemic haven’t affected us much, it hasn’t helped either.”

On February 3rd, Ryan confirmed Bitspark’s reasons for the shut down in a Twitter thread –

“What caused the closure. As of a month ago, I made the decision to step down from my position as COO of Bitspark. This naturally caused a need to restructure the company which unfortunately landed this result […] This paired with the landscape of Hong Kong with protests and the coronavirus where Bitspark HQ is located. The team and shareholders decided this was the best way forward to prevent integrity decay of the company.”

In spite of claiming that Harrap and Ryan ‘lost their dreams as founders, Ryan still underscored that Bitspark’s shut down doesn’t mean that the cryptocurrency and blockchain industry are doing any less –

“Whether you call it #bitcoin #crypto #blockchain, this industry is an incredible one. Please do not take this as a sign of its decline as it’s stronger than ever and I cannot wait to see what its future holds.”

Bitspark led an ICO amid the hype of 2017, launching its ZEPH (Zephyr) rewards token ICO in November 2017 for a project gaining practical experience in the exchange of fiat cash on a blockchain.