Topic: Risks of the Exodus Exchange function ("CoinSwitch Scam") (Read 912 times)

Their non-custodial claim remains true.

Thing is, exodus wallet and their partnered exchanges are separate platforms. Once you send away your coins in order to swap, the money now sits on the exchange's wallet as well as control (once confirmed, mind you) and no longer in your exodus wallet.

I have exodus and noticed this problem a few weeks ago.

For storage i think exodus is good, but for exchange it sucks.
Even if the chance of getting my coins frozen during a swap is like 1 in a million swaps, i still think that is a risk i dont want to take.
How can exodus say they are non custodial wallet if their partner can freeze your coins?
Makes no sense at all.
Its like i give my car to you, and then when you drive away with it, i shut it down remotley and say i need you pincode to your bankaccount or else you Will never be able to drive the car.

Biggest problem is that exodus say nothing about this when you press exchange in the app.
If a big text would come up that said” you are now using a third party exchange that are KYC and can freeze your coins when ever they want” , no one would use exodus as exchange.

I just cant understand why exodus is not clear with this from the start.
Very shady and irresponsible  in my opinion.

And last I check they don't let you choose which third party exchange to use. The best part is how most of them are either lesser knowns to never heard or popular but has a bad rap on the community.

Exactly. Personally, I wouldn't recommend their swap service because better safe than sorry in case our funds are stuck due to 3rd pars provider issues.

Yes, it's working like that.
Swaps are really easy and straight forward. No KYC, no account required, no shenanigans.
eXch.cx is also active here on Bitcointalk, more information is available in their ANN.
You'll also find all available coins in their ANN.

Their exchange  isn't worth a try because  I just went through  some bunch of reviews and it's  somehow  disappointing, truly some of their third parties  are scam

Review src

So eXch.cx only requires the two swap address and the Api takecares of the rest with the fee??

Probably, because since my post was made, almost 4 years have passed.  

I haven't done any swap on Exodus recently (I don't even know if I've done any swap after creating this topic), so probably that's a better question for Exodus reddit or similar.
I just know that Exodus has several 3rd party providers to handle such swaps.
Their partners have changed in the past, so probably all we can do is trust Exodus and that their terms of service is still valid (can't link it directly since it's a PDF) but I would avoid Exodus swaps. In addition, fees are way too high. There are much safer, better and cheaper opportunities.
Personally, I like eXch.cx for quick swaps.  

whoops! haha  I wanted to say Big-time span but mistakenly wrote spam. it proves words have power and only one alphabet can change the whole meaning.


Dear, Many Thanks for letting me know about this. Actually, I registered here in late 2022 and active here around from mid of 2023 these kinds of things add up to my knowledge. 

Okay ! but I'm  not sure I'm the only one seeing  this probably a mistake or  was only a desktop wallet while this post was made.
Currently, Exodus  supports mobile(Android &IOS),  web3, and  trezor hardware wallet.

Also, I want to ask if making a swap goes through  that particular  third party  you mentioned  or its  not completely advisable to make swap on  Exodus???

The Sceptical Chymist is one of most active and serious reporters against spam in the forum, years ago, in 2017 and 2018, not in 2015. Back in those years, it was a big bull run with Bitcoin halving, Ethereum growth and ICOs. The forum was coverd by massive spam from bounty hunters.

Time Series on monthly statistics of forum (new users, new topics, new posts)

I quote two charts to reflect some activities in the forum which partially reflects spam. The plummet is because of merit system kick off.

I like this idea.

which could be summarized as such:

The Sceptical Chymist, = [a] big-time spam.

+1
Beginners and Help is definitely a board, where some more Merit woulnd't hurt because in general, many topics are really interesting and members are putting in quite some effort.
As far as I know, suchmoon isn't a Merit source anymore (?) and she always spend some Merits on B&H but these Merits are missing now.
So, if you are going to be active here, I'm sure it'll be beneficial for this section. 

Dear The Sceptical Chymist, Actually we all are at the learning stage at the beginning of time when we start working anywhere. TBH, I learned a lot from this Forum from Time to time with the beautiful interaction of my senior and respectable members. I avoid violating the forum rules i read many of the threads in the help & beginner section I try to remember them in my mind for future purposes so that I would not face any difficulty here and when I look at members like you it motivates me a lot. I just checked your account status and came to know that you have been active here since 2015 which I think is big-time spam. You are really doing well and have a good reputation on the forum.

I hope one day I also will have a good reputation here By the way it is nice interaction with you dear. Many Thanks

Just my 2 sats here--you made an honest newbie mistake (or at least a breach of etiquette) and you're not going to get tagged or ignored just for that, so no big deal.  I just stumbled upon this thread whilst doing a post history review, and I know I'm late to the discussion but thought I'd weigh in anyhow.

And jeez, I guess I never realized there were a lot of good threads in B&H.  I ought to visit this section more.

Hey 



Nice to have your translations here, well done. 
It's checked and approved now, so I'll add it to my list of local language translations:

Language	translated by	Title
___________________________	_____________________	_______________________________________________________________________
Arabic	Nalain420	مخاطر وظيفة Exodus Exchange ("عملية احتيال CoinSwitch")
Pakistan	snowpega	ایکسوڈس ایکسچینج فنکشن کے خطرات ("کوائن سو

Your help is much appreciated to educate Bitcointalk members how to avoid scam. Even if only a single person is saved from getting scammed by "CoinSwitch Scam", it's already a win. 

Hi there

Hope you doing well. I have translated this Topic in my local language "Urdu" In Pakistan. It Takes my time but i feel good to translate this Topic because it can help people to avoid from scams. I tried to use easy Words of Urdu So that massage can be conveyed easily.
This is Translated Topic Link:
ایکسوڈس ایکسچینج فنکشن کے خطرات ("کوائن سوچ سکیم")

I have completed translation and this my translation link in Arabic language: https://bitcointalksearch.org/topic/m.63456531

Thanks @1miau for giving me a chance to translate this important and useful topic into Arabic community. I hope to translate other your topics in future.

Have a nice day   

Nalain420 ~

Hi there. Hope you doing well thanks for updating me about OP translation and second thing i was not awre of is like requesting publicly for merits is not allow. I accept my misktake and already have cut those lines which was my mistake. Well i learned it now and will never repeat my this mistake again. My apology.

Regards.

snowpega

Unfortunately, regarding translation my OP says:

It's not available currently due to abuse (see complaints in Meta).

+1
Begging for Merit is not allowed and some forum members are very strict about it, for example, Merit beggars can end up on someone's ignore list or even get a DT tag for Merit-begging. It's always recemmended to let posting quality speak for itself, and if so, no begging is necessary. 

It would have better if you didn't add the plea for merit
It's frowned upon in the forum
I would suggest using this link https://bitcointalksearch.org/topic/m.61957500 a self moderated post by Cyrus to rank up when you Atleast 25 merit close.

Success on your Exams and an Happy new year.

Hi, snowpega

In this way asking someone for merit begging directly is out of forum rules. You post as much as you deserve and you get merit.
But if you translate @1miau post if it is correct then you can get merit. Keep posting good posts regularly hope you get merit.

Good luck for your next rank.

Hi there!

Hope you doing well today

@1miau Sir i don't mean to disturb you. I would like to translate your this topic in Pakistan local board but after some days if you allow me to do because i am busy these days in my university exams.

As you can see I'm close to my next rank can you please distribut me with some merits i really appreciate it. I want to see it before new year. Edited-----> (you can visit my profile and my topics)

Do lemme know sir if I'm allow to translate your topic. Thanks

   Exodus wallet is a non-custodian wallet which approve a great collection of different cryptocurencies, it's most important purpose is to store Bitcoin .

   Exodus wallet is  a multicurrency cryptocurency wallet pressed together with large structures like an  act of choosing that allows users to point assets directly within the wallet to get relating income and users can have a smooth exchange  cryptocurencies within the wallet . It also support various assets and their immediate exchange integration structure users swapping over 100 supported digital currencies, that is the coins will not leave the saftey and security of the user's non-wallet.

     Note ÷if your device that is holding a cryptocurency wallet is compromised or having a malware or virus ,that wallet is at risk and not secured   .

   *  In avoiding the risk you have to make sure that your device is free from viruses ,e.t.c by using most efficiently t op antivirus programs on your devices before using them and remain safe online.
   *  Do not download files, links and unknown that are not trusted  .
   In other to protect  your wallet from unauthorized access you have to create a strong password ,also Exodus provides private keys for all their users as a backup which will be keep safe in case of damage  or misplaced can be recovered.

Hey Egii Nna   
Many thanks for your translation. After your translation got approved it, I'm adding it to my list:

Language	translated by	Title
___________________________	_____________________	_______________________________________________________________________
Nigeria (Naija)	Egii Nna	D RISKS WEY DEY EXODUS EXCHANGE FUNCTIONS ( HOW COINSWITCH SCAM PEOPLE )

Well done and your effort is much appreciated.
Especially considering what's described in OP is still happening, like here:

---

I've already added his link in my list, already also containing the headline properly. 

I think you should have make your link look something like this==> : D RISKS WEY DEY EXODUS EXCHANGE FUNCTIONS ( HOW COINSWITCH SCAM PEOPLE ) at least it would look more matured and more presentable.
If you don't know how to do it, perhaps you can visit this thread please help by @pi-network314159 to learn it.

Hello. @1miau, my translation is ready here is the link
https://bitcointalksearch.org/topic/m.63333480

I will you this medium to appreciate you for giving me the mandate to translate your topic to my local board and also inform you that the transition is now ready at my local board:
https://bitcointalksearch.org/topic/d-risks-wey-dey-exodus-exchange-functions-how-coinswitch-scam-people-5478110

Anyone who uses google translator or any other available translator to translate a thread verbatim ought to be banned according to the forum rules. The act of using a translator to re-write a quality thread that consumed knowledge and time to produce is fraudulent. If it is done with the intention of obtaining a fraudulent merit, I think the user deserves a tag from you (it could be a neutral tag). That is the best way to prevent abuse and maintain quality. If using a translator is what is needed, it wouldn't be a problem for you to use the translator to write your thread in different languages without the involvement of anyone.

There are probably more reasons, but laziness and greed summarize it well. Once a user has the mindset of cheating, they automatically become mentally lazy to do things the right way.

Most common abuses are low quality translations due to Google translate abuse, where people "translating" it, are just copy-pasting the entire text into Google translate and post it 1:1 without any changes as a "translated article" for their local board.
And unfortunately, such abuses are very difficult to spot for me or anyone, who isn't a native speaker of that language.
To spot such abuse, we have to rely on local board members to report it.
Here are some complaints, for example: https://bitcointalksearch.org/topic/m.63111902

For decent people like you or other quality posters, a legitimate translation is very common but still, some people are just
- lazy
- greedy to obtain a fraudulent Merit
- lacking any language skills / are illiterates
(there are probably more reasons)
...
 

I am surprised to understand that there's abuse of translation. How does this happen? More than one user translates a thread?

Quality is the key. The translated version of a quality post should remain quality. Besides, it's same post, the only difference is the language.

Hello  

Sorry for the delay, due to abuse, we had to review new applications.
If you still want to do a translation, you can proceed now and reply here again, when you are ready.

---

Translations:

Language	translated by	Title
___________________________	_________________________	_______________________________________________________________________
Nigeria (Naija)	Egii Nna	reserved

Please make sure to provide a quality translation, of course.

---

Please not that reserving NEW translations is not available currently.

---

Topic is still very valid as new cases from Exodus swaps have shown, like here:
Someone tried to swap 4,500 USD and his funds are now getting held hostage: https://www.reddit.com/r/ExodusWallet/comments/13858qc/asking_me_for_kyc_on_a_swap/

Hello, @1miau, if you don’t mind I will like to translate this topic to my local board (Naija local board) pidgin, thanks.

I'm not blaming Exodus here but their third party service. Maybe it could be an idea for Exodus to arrange a fund to pay for such mistakes (like "SAFU" from Binance) and if they have more incidents they should sort out such flawed third party providers. Obviously only CoinSwitch is causing problems.

---

I've never said that people shouldn't use Exodus exchange function, my intention was to point out that there have been *a few* users experiencing issues and explaining how that happened. Having these obviously rare cases everyone can decide on his own if it's worth using it.
I've also used it and never had any problems but who knows how many people had problems and didn't report it.

---

Most likely because it's very easy to use. Exchanging on Exodus requires only a few clicks while in opposite sending coins to an exchange account might be more work including creating the exchange account (even if exchanges like Binance are much cheaper).

I don't think that coinswitch is scam because it's integrated into coinomi wallet as well and 2 days ago I used coinswitch to swap 3000$ worth of Ethereum to Bitcoin, received my coins completely with no problem

Storing coins on exchanges is always the worst method. Making deposits and finish trades before withdrawing your capital as soon as possible. Big exchanges are secured, and safe but they surely can be hacked. If you store your capital on one exchange during the period it is hacked, that's terrible. No one knows how severity the hack is and how it affects that exchange. Unfortunately, in worst case, you will lose your money. Don't put your capital on hands of the others even they are big exchanges.

I have never used Exodus but thanks 1miau for point this out. It reminds me about the risks of capital storage on exchanges.

Sounds like a scam and keep in mind that mentioned user did so much to get his BTC back.
But... you cant know that if it was like 3-4 extreme problematic cases in legitimate business that serves tens of thousands users?
Then jumping to conclusions based on 0.01% of users makes false accusations in the end.

I have never used any wallet to exchange my coins. I regularly use exodus but only for keeping my coins and sending them out. I don't understand why someone would exchange coins through the wallet instead of sending them to an exchange like binance, kucoin or instant exchange like coinplaza.it or Exolix.com where the rates are so friendly compared to the wallet exchange services.

While the situation outlined in your post is terrible and definitely not the experience that Exodus users deserve, it is a rare occurrence. Thousands of people use the Exodus exchange feature everyday without issue - you've presented two. It is extremely rare that exchanges are ever held and only happens when an exchange is flagged if it is suspected of being connected to a blacklisted address.

While we were extremely unhappy with how this situation all went down, it did teach us quite a few things about how to go forward. While we can never repay someone for the troubles they've endured, this customer was fully repaid by Exodus plus extra for their trouble. We even named the new internal company policy after this customer as a reminder to us.

Just a final word of warning about reposting things like this...
While it may be getting reposted with good intentions, the full circumstances behind an incident may not be fully explained in the original post, the story is usually only told from one person's perspective or it may not be true at all.

Thanks for allowing me to comment on this rare but ugly incident.

Well, you have postdes this thread for good intentions and let newbies know about this situation where when using exodus those newbies may lose their coins if the third party who handle the coins is coinswitch. Not that I completely blame exodus but they are partly at fault since they use a third party. Even the link you privide blame the exodus for it.

Just leaving this here because I heard many Newbies are using Exodus and its included exchange function because it’s easy to use (but expensive).
Recently, some negative experiences happened and were reported on Reddit. I don’t know if that just happened to a few users and if it’s not much of an issue, but in general Newbies should be aware of this when they are using the exchange function of Exodus.

Users should know that Exodus is not an Exchange itself, but only a desktop wallet with an integrated Exchange function. The exchange of cryptocurrencies is therefore carried out by an independent third-party provider used by Exodus. Exodus is forwarding the cryptocurrencies to be exchanged by these external services. Until the end of 2018 Exodus had a partnership with ShapeShift, which operates from Switzerland and Denver. But when they were forced by the SEC to introduced KYC, Exodus was in need to look for another business partner.
This function is now performed by 5 different providers, including Changelly and CoinSwitch etc.. However, reports have appeared recently that users are losing their coins when they are using the Exchange feature.


During the last few months, some users have complained, especially on Reddit:

https://www.reddit.com/r/ExodusWallet/comments/e6rydc/beware_exodus_exchange_scam_ripped_75_via/
https://www.reddit.com/r/Bitcoin/comments/ei0h8m/coinswitch_exodus_scammed_6500_euro_coinswitch/
https://www.reddit.com/r/ExodusWallet/comments/egphm2/exodus_coinswitch_are_a_huge_scam/


And here is a short summary how they got scammed:

Some users had used the Exchange function in Exodus and the coins were sent, but the exchanged coins didn’t come back as promised. After contacting Exodus support, the users were told to contact the third-party provider "CoinSwitch" which was used to exchange the coins.

The affected users did that but CoinSwitch not only refused to swap coins, but also refused to send the funds back (unexchanged) including a compensation for transaction costs. CoinSwitch insisted on the exchange and demanded a full KYC, otherwise all funds would remain blocked:


Source

Another user had frozen 6500$ and sent the requested documents for KYC.
After CoinSwitch had received every requested document, the user still didn’t get his coins back, but was asked to send an identity video. He did that too, but it was still not enough and CoinSwitch demanded that he prove the origin of the funds.
But even after he did that, they didn't send the coins back, only when the user put pressure on CoinSwitch and made a post on Reddit while also Exodus sided with the scammed user, the coins were returned….

=> It looks like CoinSwitch deliberately misleads users and intends to steal their coins via KYC scam.


Finally, it remains to be said that these cases are not the majority and may only be random exceptions. However, not only large amounts were affected, but even low amounts.
I’m not blaming Exodus, CoinSwitch is responsible, a third-party instant exchange provider, which acts dubiously by freezing coins. But after all, users lost their coins completely.

My question here: did you use Exodus for exchanging coins after 2018 and it was fine?

---

Translations:

Language	translated by	Title
___________________________	_____________________	_______________________________________________________________________
Nigeria (Naija)	Egii Nna	D RISKS WEY DEY EXODUS EXCHANGE FUNCTIONS ( HOW COINSWITCH SCAM PEOPLE )
Arabic	Nalain420	مخاطر وظيفة Exodus Exchange ("عملية احتيال CoinSwitch")
Pakistan	snowpega	ایکسوڈس ایکسچینج فنکشن کے خطرات ("کوائن سو

Reserving new translations is currently not available.