Early Days
Cryptonit appeared back in 2012, when crypto trading was still a niche. The service looked simple: a web platform where users could buy Bitcoin with euros or dollars and withdraw funds to their bank. At the time, very few exchanges allowed this. Early traders liked the idea. Deposits worked through SEPA, PayPal, Skrill, even Western Union. That variety attracted people who wanted flexibility.
The interface felt light, with clear charts and quick orders. Fees were also competitive. Maker trades cost nothing, taker trades only 0.25%. Withdrawing Bitcoin required 0.001 BTC – quite normal in those days. For several years, everything seemed stable.
The First Cracks
Problems started to surface around 2016–2017. Users began posting about slow withdrawals and odd verification demands. Some were asked for extra photos or documents that didn’t make sense. Support, once responsive, often went silent. While some traders still had no issues, the warning signs were there.
Another concern: no license. Cryptonit never obtained approval from the UK’s Financial Conduct Authority or any similar regulator. In the early years, that wasn’t a big deal, but by the late 2010s regulation became the standard. Without it, users had no protection if the platform failed.
The Shutdown
In April 2019, Cryptonit quietly closed. There was no clear statement, no compensation plan, no final message to clients. Accounts froze, the site went offline, and funds left inside were never recovered. By 2023, the FCA had added the exchange to its list of unauthorized firms. That warning confirmed what users already knew – Cryptonit was gone for good.
What Users Say
Reviews tell two very different stories. Traders from the early years remember fast trades and smooth service. Later comments paint a darker picture: blocked accounts, endless checks, missing funds. Some accused the platform of shady practices. Others simply gave up and moved on.
Trustpilot and similar sites show only a few reviews, positive and negative mixed together. The small number itself tells a story – by the end, hardly anyone was using the exchange.
Where It Stands Now
Today Cryptonit no longer operates. The company behind it has vanished, and no support exists. Broker comparison sites mark it as unsafe. The FCA warning remains as a reminder that this exchange never met regulatory standards.
For those who once had funds there, chances of recovery are practically zero. Cryptonit has become just a name from the early crypto days, a ghost of a platform that failed to adapt.
What We Can Learn
There’s a clear lesson here. Exchanges without oversight can vanish overnight. Low fees and good marketing don’t matter if there’s no protection for users. Modern traders should pick platforms that have licenses, strong security, and public accountability.
Today, the market offers plenty of regulated options. Cryptonit’s collapse shows why research is crucial. Risks may stay hidden for years, but they always surface in the end.
Quick Overview
| Feature | Status / Details |
|---|---|
| Founded | 2012, London |
| Current activity | Closed since April 2019 |
| Trading fees | 0.25% taker, 0% maker |
| BTC withdrawal fee | 0.001 BTC |
| Fiat deposits | SEPA free, PayPal 2%, Skrill 8%, others high |
| Regulation | None, FCA warning in 2023 |
| Reputation | Mixed early, poor later |
| Verdict | High risk, not recommended |
Final Thoughts
Cryptonit once filled a gap in the market. It offered fiat access when few others did, and for a while, it worked. But with no regulation and growing user complaints, it couldn’t survive.
For traders, its story is a warning. Unlicensed platforms might seem fine at first, but they can disappear without warning, taking funds with them. Cryptonit is now just a memory – a case study in why regulation matters.