Why Minor Crypto Exchange Pulls Off Exit Scam, Steals All User Funds

ufaiz50

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Quote from: cybersofts on November 11, 2018, 01:55:06 AM

A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.

What is the motive behind all these minor exchanges, anyway?

Some of the reasons I think about are because they don't get a lot of customers to be able to run their business and inevitably to cover losses, they have to close the exchanger by running away with customer funds that are already in their hands and many sites that are in different fields do the same thing to benefit as long as they develop the site, but I hear one site that you mentioned it opened the dev identity and where they did business.

anntlevel

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Quote from: cybersofts on November 11, 2018, 01:55:06 AM

A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.

What is the motive behind all these minor exchanges, anyway?

And why would you go for such an exchange since you already what will be the outcome. Some of them are scammers that wants to get a lot of people to trust them and when they have gotten a lot of money deposited into their hands, they will just take the exit. Sometimes it’s best to stick to the old exchangers than going for new exchanges.

StarofBTC

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Quote from: Flor1982 on November 16, 2018, 01:40:52 AM

Quote from: btc_angela on November 11, 2018, 04:04:46 AM

Quote from: cybersofts on November 11, 2018, 01:55:06 AM

A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.

What is the motive behind all these minor exchanges, anyway?

But the question is, MapleChange or at least the people behind that exchanges can't hide because their real identify is all over the net. So as much as they wanted to exit scam, sooner or later they will be caught by the authorities. As for the motives, I can't say, the only thing I seen is that perhaps they don't have the funds to liquidate their customers so its better to hide and run from them.

If they will be caught then they could easily tell the authorities that they were a victim of hackers that they are not the one who steal the people assets but the hacker themselves do the job like the other exchanges common reason. The main reason of this stealing is of course to steal the money that we should not trust exchanges of keeping our assets to their wallets so hopefully this will serve warning to the other crypto users out there.

Usually in most cases, that is something that basically could happen, but does not mean they will have to suffer for it since they will have to explain why they never followed standard safety protocols when it comes to the safety of assets. Also, let's just assume from the onset they have been using their real faces online, and not just some random faces.

It is nothing new, as we have seen it in most ICO projects before and these days, some people don't even tend to verify the faces behind the small exchanges they are even using, and being a small exchange with no reputation, I still wonder why people tend to find themselves in these shoes of using them. Most times, I feel people who are gullible enough are always the cause of their own problems honestly.

wuvdoll

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Quote from: Renaldi blackspadeteam on November 15, 2018, 07:38:44 PM

usually the motive behind fraud masked by the small crypto market is done by groups or organizations that deliberately make the crypto market on a small scale after receiving a lot of deposits from new traders and cryptocurrency felt enough to meet their needs, then something like this is sure to happen ... yeah the crypto assets of the traders are stolen and carried away ...

I suggest to always trade in official crypto exchanges with a very good reputation, I always choose the crypto market that is legit at coinmarketcap.com

That is usually the thing and I wonder when people will ever get to learn when it comes to using exchanges with reputation honestly.

I am still always surprised when I get to see there was an exit scam like this and the team was able to cart away with a whole lot of money. Who are the people actually risking their life savings on a platform that obviously does not have anything to offer actually ? It is plain simple! There are so many exchanges everyone is using and well regulated to a very good extent.

Even though exchanges cannot be trusted, but at least, for someone who is smart, you will try to look for those who have been around for a while and a lot of people are using, not some exchanges that will only end up giving you a heart ache in the long run.

Flor1982

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Quote from: btc_angela on November 11, 2018, 04:04:46 AM

Quote from: cybersofts on November 11, 2018, 01:55:06 AM

A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.

What is the motive behind all these minor exchanges, anyway?

But the question is, MapleChange or at least the people behind that exchanges can't hide because their real identify is all over the net. So as much as they wanted to exit scam, sooner or later they will be caught by the authorities. As for the motives, I can't say, the only thing I seen is that perhaps they don't have the funds to liquidate their customers so its better to hide and run from them.

If they will be caught then they could easily tell the authorities that they were a victim of hackers that they are not the one who steal the people assets but the hacker themselves do the job like the other exchanges common reason. The main reason of this stealing is of course to steal the money that we should not trust exchanges of keeping our assets to their wallets so hopefully this will serve warning to the other crypto users out there.

Renaldi blackspadeteam

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usually the motive behind fraud masked by the small crypto market is done by groups or organizations that deliberately make the crypto market on a small scale after receiving a lot of deposits from new traders and cryptocurrency felt enough to meet their needs, then something like this is sure to happen ... yeah the crypto assets of the traders are stolen and carried away ...

I suggest to always trade in official crypto exchanges with a very good reputation, I always choose the crypto market that is legit at coinmarketcap.com

o_e_l_e_o

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Quote from: BitHodler on November 14, 2018, 07:40:47 PM

True, but that's directly the main obstacle for most noobs. Reputable exchanges generally have strict KYC/AML policies in place, and they are firm on not listing utter garbage coins.

Binance allows deposits, trading and withdrawals of up to 2 BTC per 24 hour period without any KYC. KYC is only required if you want to withdrawal more than 2 BTC per day. Given that, there is literally no good reason to use some unknown exchange that is infinitely more likely to scam you.

Quote from: BitHodler on November 14, 2018, 07:40:47 PM

They are here for a sweet payday, but all they get is a very expensive booty smacking treatment.

Yup. They chase crazy gains from ICOs or some unknown coin on some unknown exchange, but at best they will just lose their money, and at worst, end up sending their documents to some complete scammer and have their identity stolen.

BartS

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Quote from: cybersofts on November 11, 2018, 01:55:06 AM

A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.

What is the motive behind all these minor exchanges, anyway?

If you see the daily volumes of exchanges you will see that even if the fees that they charge are very small they are making a fortune every year, so it is completely understandable that some people want a piece of that money for themselves and want to create an exchange, the problem is that it is very difficult to create a successful exchange so it is likely that many dishonest people have a plan B and that plan is to steal the funds of all their clients.

BigTeeths

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Quote from: cybersofts on November 11, 2018, 01:55:06 AM

A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.

What is the motive behind all these minor exchanges, anyway?

I guess they are just a bunch of impatient people who can't take the long bear period on this year 2018. They might gave a timeframe for the market to recover and then after that they decided that if did not then they will pull off an exit scam. I mean, if I was an owner a small exchange that has only few traders then I will not profit from anything at all so exiting would easily get in my mind as an option.

awik p

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Pepemo.vip

Quote from: bayu7adi on November 14, 2018, 09:11:06 PM

gaining the trust of a centralized party is indeed not easy, because everyone will be tempted by a lot of money in the world
actually not only exchangers with a small volume, but bittrex or binance can do the same thing, because their wallet is hacked by a hacker, and publish it. that's where there will be many problems in the crypto world

but of course for large exchanges it does not intentionally consume user funds, in contrast to the small exchange where they want to easily get funds but the road taken is wrong

bayu7adi

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dont be greedy

gaining the trust of a centralized party is indeed not easy, because everyone will be tempted by a lot of money in the world
actually not only exchangers with a small volume, but bittrex or binance can do the same thing, because their wallet is hacked by a hacker, and publish it. that's where there will be many problems in the crypto world

BitHodler

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Quote from: o_e_l_e_o on November 14, 2018, 03:54:33 PM

It's much safer to stick to large, reputable exchanges that have been trading for years than going near a new and unproven exchange.

True, but that's directly the main obstacle for most noobs. Reputable exchanges generally have strict KYC/AML policies in place, and they are firm on not listing utter garbage coins.

It's not for nothing that exchanges as Yobit exist and continue to gain popularity as the larger exchanges become too much of an obstacle for people. It's greed over common sense in this industry.

Another effective way of attracting noobs is advertising through Facebook and whatnot. That's where most of the worst noobs come from, and also explains why they don't know what crypto is about.

They are here for a sweet payday, but all they get is a very expensive booty smacking treatment.

o_e_l_e_o

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Quote from: Kakmakr on November 11, 2018, 03:47:04 AM

Any business must be profitable and a lot of these smaller exchanges are not getting enough customers to make it sustainable, so they just go the exit scam route to recover their losses.

I think you are giving them too much credit. I suspect the number of exchanges scamming to recover their losses is far smaller than the number of exchanges created for the sole purpose of scamming. It's not difficult to create a basic exchange, and even if you can't manage that, you can buy a pre-made one for not much money. The ICO market proves that there are literally thousands of morons that will sign up to anything with a website, and send you both their personal documents and their crypto in a heartbeat.

These scam exchanges (and scam ICOs, ETH twitter scams, doubler scams, etc) will all continue as long as their is a steady stream of naive fools willing to part with their money so readily. It's much safer to stick to large, reputable exchanges that have been trading for years than going near a new and unproven exchange.

jimbo2000

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Quote from: cybersofts on November 11, 2018, 01:55:06 AM

A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.

What is the motive behind all these minor exchanges, anyway?

Money. Pure and simple. That's their motive, they all think that it's easy to run a good exchange and they'll easily make millions. Probably the only minor exchanges that do make millions are the ones that do as these two did. People shouldn't use such exchanges and even if they do, they should not leave their coins in the exchange any longer than is necessary.

fommes86

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Quote from: Kakmakr on November 11, 2018, 03:47:04 AM

Any business must be profitable and a lot of these smaller exchanges are not getting enough customers to make it sustainable, so they just go the exit scam route to recover their losses.

Other sites do this as a long con, because they know the exchange will not succeed, but they do it anyway, because they know they can get a lot of money at the end, if enough people join their service. They just monitor the deposits and when enough people deposit a large amount of money, they cut their losses and run. Angry

Its unfortunately true. Angry

UNOE

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This is personal

It is sad to see that this things still happening, I wish that funds will be refund to users if that such a thing is even possible.
Also I thing that minor exchanges are not bad things to have at least for an options.

coolcoinz

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Usually the motive is one of the 3 or all 3 combined.
1. The exchange got hacked or got into some problems and is slowly going or already is bankrupt (like MtGox)
2. They got into some kind of legal trouble and have to run with the money. (like BTCe)
3. The exchange was made as a shell and they were planning to exit scam people from the start. (I believe this Canadian exchange falls into this group)

Kemarit

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Quote from: cybersofts on November 11, 2018, 01:55:06 AM

What is the motive behind all these minor exchanges, anyway?

Of course they're motivated because its 'easy money' for them. Imagine those criminals thinking that they don't have to work for the rest of their natural life because of the huge money they scam from traders and investors. Shocking, but that's the truth behind the minds of those criminals and its sad at the same time because this kind of news will be put off against crypto by those governments or banks around the world who's hostile and anti-crypto. Another argument that they can throw at us if they wanted to attack again. Moral lesson is not to store huge funds in an exchange, or better stay off from trading platform who don't have reputation to begin with.

el kaka22

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Quote from: cybersofts on November 11, 2018, 01:55:06 AM

A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.

What is the motive behind all these minor exchanges, anyway?

These types of stuff can't happen if the companies are legally registered somewhere in the government and country.
If you have a company that is registered than you can't just "close shop and run away" because you are still a company in countries eyes and you still hold funds for the people and if you try to run away with it than it becomes a huge legal battle that will see you in jail, people won't risk jail time for these kinds of small numbers.

Hence, if you want to put your money in some company, make sure they are registered with the right places so you can be assured they won't be capable of leaving right away. They can still try to find a loophole that would allow them to keep bitcoins somehow by hiding it and just declaring bankruptcy but even that won't be easy to achieve.

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Quote from: cybersofts on November 11, 2018, 01:55:06 AM

A small Canada-based crypto exchange called MapleChange and now the Pure Bit from South Korea has pulled off an exit scam, disappearing with user funds all in one month. The disappearance of MapleChange and Pure Bit with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings.

What is the motive behind all these minor exchanges, anyway?

What is the motive behind the scams? Just to make easy money and I will say the problems are with the investors who are ready to use those exchanges which has no reputation.Some of the scam exchanges can be identified when we research deep about their location and their site details ecause scammers use different and fake details for registering the websites.

Topic: Why Minor Crypto Exchange Pulls Off Exit Scam, Steals All User Funds (Read 372 times)