Polish Crypto Exchange Zonda Hit by Withdrawal Crisis

Polish cryptocurrency exchange Zonda is facing a major crisis after losing access to about 4,503 Bitcoin held in a cold wallet. The exchange claims it never received the private key from its former CEO, who disappeared in 2022.

The lack of access to the cold wallet has resulted in significant delays and difficulties for customers attempting to withdraw their assets. This has led to a surge in customer withdrawal requests, creating a scenario reminiscent of a bank run.

The exchange has denied allegations of embezzlement, but rumors of a funding shortfall have spread quickly, adding to the pressure on Zonda's management to resolve the situation.

The incident has highlighted the risks associated with centralized exchanges' asset custody structure and key management practices. As a result, experts are calling for greater transparency and accountability in the industry.