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

[BartS]

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.

[o_e_l_e_o]

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.

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.

[Renaldi blackspadeteam]

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

[Flor1982]

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.

[wuvdoll]

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.

[StarofBTC]

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.

[anntlevel]

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.

[ufaiz50]

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.