Back in May 2018, the popular Zimbabwean-based Bitcoin exchange, Golix was bullish about its future prospects. Still in the very year, the exchange claimed that it had raised $32 million from a token sale and had plans to establish operations across different African countries. Unfortunately, more than a year later, the startup exchange which use to know success has had a reversal of fortunes. A significant number of challenges forced shutdown this exchange in Zimbabwe. Since then, some of Golix’s former clients are really having hard time to get their funds reimbursed.
Embezzlement Allegations surrounding the Golix Controversy
Without hesitation, former Golix users now point to a possible embezzlement of funds by Golix executives. From the other angle comes an investor who completely blames the hostile operating environment as the main reason why the company experienced failure. Before Golix was shut down in Zimbabwe, it had as chief executive officer, Tawanda Kembo.
In May 2018, the Zimbabwe’s Central Bank issued a stern directive that forbade all financial institutions from dealing with crypto exchanges. This financial hostility according to Golix led to banks blocking access to client funds. In addition, Golix also claims that the directive also blocked its company from using the financial system.
Zimbabwean Central Bank Defiance
During an interview, Chinyamakubvu was asked why Golix had not resumed operations following a High Court ruling that set aside the Central Bank order, he suggested that Golix’s Zimbabwe financial operations remain hamstrung by the Central Bank’s reluctance to lift the order. In his own words, he stated: “They (Reserve Bank of Zimbabwe) did not lift the order they sent to banks. So no bank wants to defy a regulator. But that said, you muddy the water once, that’s enough to change its colour for a while,”
Whatever the case, Chinyamakubvu is highly convinced that the central bank’s apparent defiance of a court ruling continues to hinder the growth of digital assets in the country.