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

[cybersofts]

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?

[Kakmakr]

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?

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. <The expenses of putting the site together>

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. 

[btc_angela]

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.

[audaciousbeing]

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?

Its really disappointing to see things like this happening in the crypto world because not only does it limit the chance of other startups from breaking even in record time, it brings disrepute to the entire market that anyone can launch and then scam with little or no consequence which is what we don't need in the market at this time.

The motive behind small exchange sites is based on the objectives of the promoters. Agreed that they might have some amount of challenges in terms of liquidity but not enough to then cart away investors fund. Return their money then go back to the drawing board to re-strategize then come back. The reputation would still be intact and this time, enough to spread to the market easily.

[damberg]

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.

It is sad to see these small exchanges ruining trust in cryptocurrency exchanges. They might have thought in certain point that they will never make money in such highly competitive market, and they didn't see any other way than fleeing to some distant islands in the middle of ocean (I am not trying to advocate their actions, just trying to understand their motivation). 

[pixie85]

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

All businesses start small and everyone has the right to make their own exchange, especially if there's a demand for a currency that operates on local currency. Not all of us have or want USD and EUR. Some people want INR or some other currency and will be drawn to these small exchanges.

We don't know why they did it but the best explanation is "for the money".  They wanted money now and were ready to break the law to get it.

[Pab]

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?

t
Reason is always the same
Make easy money
i know from the deep past a lot of exchanges what disappear with user funds
Some of them were not small even but biggest exchanges that time

Mintpal Cryptsy CoinRush  are best examples
Owners were posting news we have been hacked but true was different
Owners stolen people money and disappear
So do not trust any exchange any of them is not 100% trustworthy

[charlotte04]

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?

Of course they want it all for themselves, what else is the explanation for that? When they know that the funds of their customers are high enough they will eventually take it all and leave the exchange.

[jrrsparkles]

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.

[el kaka22]

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.

[Kemarit]

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.

[coolcoinz]

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)

[UNOE]

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.

[fommes86]

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. <The expenses of putting the site together>

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. 

Its unfortunately true. 

[jimbo2000]

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.

[o_e_l_e_o]

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.

[BitHodler]

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.

[bayu7adi]

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

[awik p]

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

[BigTeeths]

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.