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Author Topic: [2018-10-29] Minor Crypto Exchange Pulls Off Exit Scam, Steals All User Funds  (Read 414 times)
veleten
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November 06, 2018, 03:53:24 PM
 #21

Where do people find exchanges like this? Why do they choose to trust them?

I could understand someone dabbling with a totally unknown quantity in 2011 when everything was crap. In this day and age it makes no sense

no idea, really why would one search troubles for his hiney is beyond me
not that the big ones won't scam you, but at least the chances are way lower
plus some of the smaller exchanges do not even have enough pairs or offer low fee
think it is just good old human laziness, you find one exchange and then do not bother to look for other options

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Betwrong
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November 07, 2018, 11:50:36 AM
Merited by 1Referee (1)
 #22

Where do people find exchanges like this? Why do they choose to trust them?

I could understand someone dabbling with a totally unknown quantity in 2011 when everything was crap. In this day and age it makes no sense
~
- start adding pairs of shady tokens that have never hit another exchange and make sure to advertise this on their ann thread
~

I think this is the main reason why people find exchanges like this. Right now, for example, many people are looking for a way to trade Oyster (PRL) tokens, and some of them would definitely fall for a scam site where PRL/BTC, PRL/ETH or other similar pairs are being "traded".

Other reasons may include terms which are more favorable for customers, like no KYC/AML, lower withdrawal fees, higher rates for the coins they want to sell etc.. People who fall for that think they are smarter than others, and consequently they pay the price.

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Kemarit
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November 08, 2018, 11:30:05 PM
 #23

For those who wanted to see the post-mortem:

https://pastebin.com/PZD3Qb35

They used a open source called Peatio. (https://github.com/peatio/peatio). But it seems the hacker knows how to exploit a bug on the application itself.

Quote
~

This is another lessons learned for other exchanges to do some internal audit specially if they are using open-source. They already admitted that they're not refunding any BTC or LTC so its another lost for our crypto traders here.


This doesn't eliminate the possibility of an exit hack.
They've could have done this themselves knowing the exploit and blame it on some "hacker".

Unfortunately, I can see a new trend growing here, small exchanges doing some upgrades they now are faulty without bug fixes and then hacking themselves exactly at the right time.

I don't buy this hacker story, when you get hacked you don't start deleting LinkedIn profiles and bitcointalk posts, it's pretty clear that for a moment at least they've tried to run away and erase all traces, probably they've decided against it once they've realized they left behind too much info and tracking them would be a piece of cake.





Of course we can't discounted the fact that it could be very well a 'inside job'. Easy money for them, just blame some hackers for pulling the stunt and they're off the hook. But its hard to prove unless there's someone who 'rats out' and exposed them.

@Betwrong - you could be right, but if traders would just used their common sense, just trade their shitcoins on that shitty exchange and get out. No need to keep their funds because this kind of fly-by-night exchanges are not to be trusted. But it too late already, and now they're paying the price for this stupidity.

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November 09, 2018, 05:58:42 PM
 #24

Better to use a trusted exchange with known staff members or at least having real names and locations.
This exchange is scamming users, or else why would it shut down every possible contact with it?
The "hack" story will never end apparently.

I use the Bitfinex and Poloniex, they are quite reliable. They have returned the stolen funds.
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