Coinjar Withdrawals Delayed Due To Bitcoin Wallet Outage

Coinjar users had quite the scare earlier today, as outgoing Bitcoin transactions were not always correctly processed. Apparently, the company has been facing a wallet outage, and the managed to resolve this matter a few hours ago.

Also read: Samourai Wallet Now Has An OpenBazaar Store

Coinjar Wallet Outage Is Problematic

TheMerkle_Bitcoin Wallet Outage Coinjar

The issue was initially reported on the Bitcoin.com forum by a user who was having an issue with Coinjar earlier today. Withdrawing funds seemed to work as it always has, but the outgoing transactions were never recorded on the Bitcoin blockchain. This caused some confusion among platform users, as not being able to withdraw money from a platform is always a worry.

As it turns out, Coinjar has been dealing with a Bitcoin wallet issue, and the team has been working hard on coming up with a solution. According to the Coinjar website, the issue was resolved several hours ago, although it is unclear as to whether or not all of the transactions have been sent out by now.

This news is not positive for Coinjar by any means,  as the Australian Bitcoin company does not have the best of reputations to begin with. Granted, peer-to-peer lending is always risky, especially when digital currency is involved. But allegations are circulating of people who are unwilling to pay back a loan not being prosecuted and Coinjar not doing enough to recover funds.

Moreover, Coinjar is – allegedly – run by Zhou Thong, an individual with quite the reputation in the Bitcoin world. Some people may remember this name as he is the one responsible for the Bitcoinica scam, which lead to a 40,000 Bitcoin theft back in July of 2012. Not an individual people should entrust their money to.

This also goes to show consumers should never rely on third parties to hold their funds. Peer-to-peer lending should take place between individuals directly, rather than go through a platform such as Coinjar overseeing transactions and holding funds. After all, doing so negates the entire peer-to-peer aspect of Bitcoin lending, and turns it into traditional bank loans with limited to no repercussions.

Source: Bitcoin Forum

Images credit 1,2

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