Bitsane, the Crypto Exchange and XRP Refuge Perform a Disappearing act, Scamming 246,000 Subscribers
Its daily trading volume was $7 million on March 31, according to CoinMarketCap. Forbes reports that last week, the Bitsane crypto exchange based in Ireland pulled off an exit scam, going offline and disappearing with its users’ Bitcoin and XRP. Once the account is set up, platform users can go to the Exchange page and start trading various cryptocurrencies. However, by June 17, the exchange’s website went offline without any notice, even its social media accounts – Twitter and Facebook – were deleted. The Linkedin account of its CTO Dmitry Prudnikov was also deleted, while no necessary information is available on the profile of the exchange’s CEO Aidas Rupsys.
Bitsane Cryptocurrency Exchange Disappears Alongside Users’ Funds
- Bitsane’s disappearance is the latest cautionary tale for a cryptocurrency industry trying to shed its reputation as an unsafe asset class.
- The team has already implemented some features to help users exchange have their funds safe and secure.
- Regarding a press release, Bitsane went live in November 2016 registering in Dublin as Bitsane LP in the leadership of CEO Aidas Rupsys, and its chief technological officer as Dmitry Prudnikov.
- Zmitrovich says Bitsane’s developers insisted that their exchange’s name be on the new legal entity he was forming.
- Several exchanges like GateHub and Binance have been breached by hackers this year, but an exchange completely ceasing to exist with no notice or explanation is far more unusual.
Both have since deleted their profiles on LinkedIn and were unreachable for comments. Those affected by the scam are now comparing notes in a group chat with approximately 100 members on the messaging app Telegram and in a comparable Facebook group. Sources close to them now claim that most users lost up to $5,000, elsewhere in the U.S. another person claimed to have had $150,000 stored in XRP and bitcoin in Bitsane. In the group chat, most users wish they stored their XRP tokens on their own crypto wallets instead of trusting Bitsane exchange. Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally.
- When the bear market was only about to start in early 2018, Bitsane attracted investors by letting them trade XRP before it was listed on Coinbase.
- Victims of the scam are comparing notes in a group chat with more than 100 members on the messaging app Telegram and in a similar Facebook group.
- Overall, by the end of May, there were around 246,000 users on Bitsane and each of them has lost their crypto assets.
- He says he hasn’t spoken to Prudnikov—who was in charge of negotiations with Azbit—in at least five months, and Prudnikov has not returned his calls since account holders searching for answers began contacting him.
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Two-factor authentication helps the exchange to double-check users identity and if they are the owner of specified wallet. Though the exact number of victims or the involved amount is not known yet, many users are claiming to have lost up to $5,000, while one user lost digital assets worth as much as $150,000, per the June 27 report. Victims are now turning to Telegram and Facebook groups to share their grievances.
Why Is Crypto Going Down? XRP, Dogecoin, Ethereum And Bitcoin Prices Are Falling Today
Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. Normally, the biggest problem of keeping cryptocurrency on an exchange is the possibility of the exchange’s wallets being bitsane wallet is generating compromised by external attackers. Unfortunately, there is also the risk that an exchange is ran by dishonest actors.
Bitsane went live in November 2016 according to a press release, registering in Dublin as Bitsane LP under CEO Aidas Rupsys, and its chief technology officer was Dmitry Prudnikov. Prudnikov’s LinkedIn account has been deleted, and neither he nor Rupsys could be reached for comment. Trying to deposit either bitcoin or ethereum to bitsane account in order to purchase XRP. But all I get is “Your wallet is generating” when I click Deposit. According to messages in the Telegram and Facebook groups, the biggest part of users claim to have lost around $5,000. However, there is one who says he was robbed of $150,000 in XRP and Bitcoin.
Bitsane, the Crypto Exchange and XRP Refuge Perform a Disappearing act, Scamming 246,000 Subscribers
Zmitrovich says Bitsane’s developers insisted that their exchange’s name be on the new legal entity he was forming. But Azbit never ended up using any of the code since the partnership did not materialize, and Bitsane Limited did not provide any services to Bitsane LP. Bitsane’s disappearance is the latest cautionary tale for a cryptocurrency industry trying to shed its reputation as an unsafe asset class.
Some features include advanced DDoS protection, encrypted SSL connection and cold storage of funds. Now the time has come for a new security feature, two-factor authentication. This security device guarantees that the only person who can get access to your wallet is you.
Crypto Exchange And XRP Refuge Bitsane Vanishes, Scamming As Many As 246,000 Users
Singapore-based digital currency exchange Bitrue was hacked yesterday, resulting in the theft of more than $4.5 million worth XRP and Cardano’s ADA token. Overall, by the end of May, there were around 246,000 users on Bitsane and each of them has lost their crypto assets. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. There is no guarantee of a stable value, or of any value at all.
On the coinbase site it says the transaction was completed but on bitsane my wallet says i have 0 ETH. Bitsane’s action is similar to its Polish counterpart Coinroom, which also disappeared overnight in April with an unidentified amount of customers’ funds. About 2 hours ago I transfered an amount of ETH from coin base into a Bitsane wallet.
When the bear market was only about to start in early 2018, Bitsane attracted investors by letting them trade XRP before it was listed on Coinbase.