Satowallet disappears with over $1 million in user's funds

[alexcopper]

Yes another pulled off exit scam. This time a Nigerian cryptocurrency wallet that is said to have stolen $1 million worth of funds. Withdrawals started around April while the CEO blamed the servers being down.

This just goes to identify and support Ciphertrace's AML report as 2019 being the "Year of the Exit Scam" The report claims 3.1 billion dollars were lost in exit scams this year alone.

https://coingeek.com/nigerian-crypto-wallet-satowallet-disappears-with-users-funds/

[1715246326]

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[logfiles]

With so many trusted and established wallets like electrum, Jaxx, Tustwallet(for those who want to store multiple cryptos), mycelium etc
Why would someone go ahead and start using a lesser known shady wallet like Satowallet?

This really shows how very careless people are with their funds and such news makes cryptocurrencies look like something bad and it affects adoption so much. People start to think that crypto world is full of only scammers.

[Lanatsa]

With so many trusted and established wallets like electrum, Jaxx, Tustwallet(for those who want to store multiple cryptos), mycelium etc
Why would someone go ahead and start using a lesser known shady wallet like Satowallet?

This really shows how very careless people are with their funds and such news makes cryptocurrencies look like something bad and it affects adoption so much. People start to think that crypto world is full of only scammers.

Kind of mindset that cant really be removed on ones mind specially to those who haven't known crypto yet.When reading up these kind of news then it will surely
be put up in mind the negative reputation of crypto and it isn't really that good.People who are usually get dragged down to these unknown or non popular wallets are to those
people who do only get or searching up on google or simply clicking up some banners or links without any further verification or research if the wallet is trustable or not.
They do only cry and learn later on when they already lost up some funds.If theres money rotating into this market there would be always exit scam like this as long people
never ever learn these wont reduce and repeat the same process all over again.

[ene1980]

Yes another pulled off exit scam. This time a Nigerian cryptocurrency wallet that is said to have stolen $1 million worth of funds. Withdrawals started around April while the CEO blamed the servers being down.
This just goes to identify and support Ciphertrace's AML report as 2019 being the "Year of the Exit Scam" The report claims 3.1 billion dollars were lost in exit scams this year alone.

There are many trusted wallets in the market which are transparent to know the team behind them and people should be aware of the risk of using these shady wallets, it is a really unfortunate thing as scammers will always attract users even if there are trusted services elsewhere.
Expect these kind of exit scams in full swing before the regulations are forced into this market.

[Jating]

I never heard of Satowallet, but what makes it worst is the CEO is deflecting everything and pointing to Telegram scammers as the real culprit behind the members account losing their money on that exchange. It's weird though, but this is just another expensive lessons to learn again, leaving your money in an exchanges is a no-no, I don't know what much are we going to stress on that.

In any case, this is another black eye for crypto enthusiast and could put crypto in another bad light. But I do hope that the CEO will have the audacity to explain what really happens instead of pointing fingers here and owe everything.

I also read that they blame the hosting service, and those guys hold the keys on the coin? Isn't it strange?

[pieppiep]

I never heard or know about satowallet. Maybe it's not too popular among crypto user. There are many popular wallets we can use like for example, bitcoin-qt, electrum, mycelium, Jaxx, and the best hardware that I know, ledger nano and trezor. I don't get it why people still using the wallet which they don't know how good the reputations of the company, but never mind, that will be our best lesson to stay away from the unknown wallet, so we don't have to be the next target of the scam.

I hope that after this, people will learn and will not use the other wallet which doesn't recommend so they can be safe from anything bad that might happen in the future.

[veleten]

https://www.financemagnates.com/cryptocurrency/news/nigerian-crypto-wallet-satowallet-pulls-off-alleged-exit-scam/

thats why never trust an unknown wallet provider with any sums over 100$
I'm in shock they managed to gather so much , I never even heard about them first place -1$ million , really
you got to be a very risk loving person to send coins to them 
no offense but "nigerian wallet " words combination would have discouraged me from sending any money
I remember the que of princes and princesses from Nigeria attacking my poor email that I made a mistake of publicly posting on some forums
since then I don't think I'm going to be doing any business with the nigerians

[magneto]

Yes another pulled off exit scam. This time a Nigerian cryptocurrency wallet that is said to have stolen $1 million worth of funds. Withdrawals started around April while the CEO blamed the servers being down.

This just goes to identify and support Ciphertrace's AML report as 2019 being the "Year of the Exit Scam" The report claims 3.1 billion dollars were lost in exit scams this year alone.

I swear people don't ever change or listen.

There is a reason why bitcoin is decentralised, and is trustless. Yet people still choose to place faith in random entities over the internet that they have no legal recourse to if they do get scammed. Hosted wallets in particular, are one of the favourites for scammers.

Ciphertrace's statistics don't even incorporate the full image since it doesn't show the times where funds are held by the third party without the consent of the owner of the funds (potentially citing KYC/AML as the issue).

[Quidat]

https://www.financemagnates.com/cryptocurrency/news/nigerian-crypto-wallet-satowallet-pulls-off-alleged-exit-scam/

thats why never trust an unknown wallet provider with any sums over 100$
I'm in shock they managed to gather so much , I never even heard about them first place -1$ million , really
you got to be a very risk loving person to send coins to them 
no offense but "nigerian wallet " words combination would have discouraged me from sending any money
I remember the que of princes and princesses from Nigeria attacking my poor email that I made a mistake of publicly posting on some forums
since then I don't think I'm going to be doing any business with the nigerians

When it comes to scamming things the only nationalities on my mind are nigerians and russians.This isnt a sort of racism but we all know
on what nationalities are being involved on big numbers.Yeah, we know that globally anyone can hack or scam no matter what nationality you do had.
Its surprising that there were blind people who do easily trust this satowallet.Even the reputable web wallets as of this moment arent really that 100% safe.
So we should always take precaution and its always ideal to store our coins on cold ones.

[hugeblack]

it installed tough KYC measures which would take weeks to be verified. This further delayed the withdrawals for the users.

It's really strange, why do I prove my KYC to an unknown wallet^[*]? I mean that scam is not limited to users' money but their data.
Once the platform requests your data, it means they are authorized by the government and have a place & bank statements. Why anyone didn't take any legal action against them?

If this is the application^[1], many didn’t download it so I doubt the validity of the numbers.

^[*] I do not consider such programs as wallet but merely centralized platforms. Not your Keys, Not your coins.
[1] Satowallet Android app

[Kemarit]

https://www.financemagnates.com/cryptocurrency/news/nigerian-crypto-wallet-satowallet-pulls-off-alleged-exit-scam/

thats why never trust an unknown wallet provider with any sums over 100$
I'm in shock they managed to gather so much , I never even heard about them first place -1$ million , really
you got to be a very risk loving person to send coins to them 
no offense but "nigerian wallet " words combination would have discouraged me from sending any money
I remember the que of princes and princesses from Nigeria attacking my poor email that I made a mistake of publicly posting on some forums
since then I don't think I'm going to be doing any business with the nigerians

I'm surprised too, perhaps this was the plan from the very beginning, to get 'trusted' and build their 'reputation' early and then pull off a exit scam. Maybe it was just popular amongst Nigerians and close neighbor countries. Yeah mate, I understand you, we still remember the 'Nigerian prince/princess' story and emails we got in the early 2000's and up to today. LOL. And this news will reinforce that scammers + Nigerian thingy.

@magneto - People never really learn here, unless they got scammed themselves. And that's why scammers are still here and won't go away because there are still a lot of individuals who are gullible and can easily trick by these cyber criminals.

[BitHodler]

People never really learn here, unless they got scammed themselves. And that's why scammers are still here and won't go away because there are still a lot of individuals who are gullible and can easily trick by these cyber criminals.

It looks like people don't learn because of how many newbies we have enter this space on a daily basis, newbies who have no clue about anything related to security and other risks associated with crypto.

It translates into what seems to be an infinite number of sheeps walking themselves to the butcher.... there isn't a different way to describe it. Scammers know that and patiently wait to reap the fruits of their "work".

Similar ponzi scams have existed for decades in the regular financial world too. It's not going to stop or decrease unless we run out of newbies who chase after profits because they can't succeed in life otherwise.

[Lucius]

I never heard of Satowallet...

I never heard or know about satowallet.

I never even heard about them first place -1$ million , really

I have personally heard of this project, but for those who do not visit Alternate cryptocurrencies, it remained under the radar. The question is whether this project was started with the intention of scam others, or things went downhill for some reason (hack, a corrupt employee).

I check their thread SatoWallet Exchange App| Atomic Swap| Trade| Multi-Wallet, and the last reply from their representative was on 27, March 2019. It takes 6 months for someone to conclude that this is about exit scam, which is quite enough time for the owner to disappear with the money.

[audaciousbeing]

Yes another pulled off exit scam. This time a Nigerian cryptocurrency wallet that is said to have stolen $1 million worth of funds. Withdrawals started around April while the CEO blamed the servers being down.

This just goes to identify and support Ciphertrace's AML report as 2019 being the "Year of the Exit Scam" The report claims 3.1 billion dollars were lost in exit scams this year alone.

https://coingeek.com/nigerian-crypto-wallet-satowallet-disappears-with-users-funds/

Though I have not heard about this wallet but it does not remove the fact that alot of people have lost their resources in this scam which has further dim the fortune of crypto as it concerns the trust that we expect people to have in the market. Because its not popular showed that its still in its development stage and further dim the chances of the number of projects that are trying to leave the shadow that have plagued the projects that have launched in crypto especially the alt coin and ICO or IEO market.

The most annoying part of it, is the fact that we can only post and make noise about it and in the next few days it subside while the perpetrators of this exit scam becomes young millionaires and no one to be held accountable. This is a set back and needs to be addressed.

[Harlot]

This is the types of scams that sends the wrong message for the government, I wouldn't be surprised at all if they completely block off any kind of cryptocurrencies in their country permanently. From what I know the Nigerian government are just starting to change their views with cryptocurrencies and they barely have started to create their own legal framework from the industry and now this scam hits them? Chances are the government will already create a "solution" without even identifying the problem first and this solution would most likely be shifting their views again and completely ban the crypto industry in its entirety.

[wattcrypto]

There are a lot of valuable points that have been brought up especially in regards to how do you educate new crypto users about which wallet is more reputable than the lesser known ones. Do wallets work with companies like Ciphertrace? I know exchanges do but it would be good to see wallets have compliance as well.

[imstillthebest]

i think i have heard of this wallet before if im not mistaken  . it might be really  a popular wallet especially on thier own country nigeria , thats why people use it but who would ever thought that they have shut down and end up scam  . the scamming can also happen on any other wallet or exchanges  no matter how reputable or popular they are but that is unpredictable  and the chance for it to happen is verry low i guess   .  lets just hope that it does not happen on the wallet or on the exchange that we use and let us always use the funds that we can afford to loose easily  .

[1Referee]

Chances are the government will already create a "solution" without even identifying the problem first and this solution would most likely be shifting their views again and completely ban the crypto industry in its entirety.

Nigeria is unstable so it wouldn't really surprise me if they ended up doing that, but I hope they have a few brain cells with some sense in them and combat the offenders instead of the tools they use.

If they ban crypto entirely that still isn't a 'solution' at all because people with bad intentions can still easily set up similar schemes and scam people. It's already illegal and severely punishable, so what will effectively change when they ban crypto? I'm inclined to say that it will make things even worse because these scams will be the only options available to people chasing profits.

[bellicose]

And this is not surprising. In addition to the official Bitcoin Core wallet and, in extreme cases, blockchain.info, Electrum with keys open for copying, do not use others. There are too many fraudsters in this area right now and they will attract new coots in their products.

[jaocoincrypto18]

Good thing is that this is not a common wallet for many crypto users but still it feel sad to know that another scam has successfully stole money from the people making the reputation of the crypto currency investment to become bad once again. Hopefully that there is a crypto regulation that can fully protect the investors from these thieves as scam projects are making more people to stay away from Crypto.

[Harlot]

Chances are the government will already create a "solution" without even identifying the problem first and this solution would most likely be shifting their views again and completely ban the crypto industry in its entirety.

Nigeria is unstable so it wouldn't really surprise me if they ended up doing that, but I hope they have a few brain cells with some sense in them and combat the offenders instead of the tools they use.

If they ban crypto entirely that still isn't a 'solution' at all because people with bad intentions can still easily set up similar schemes and scam people. It's already illegal and severely punishable, so what will effectively change when they ban crypto? I'm inclined to say that it will make things even worse because these scams will be the only options available to people chasing profits.

Yeah banning crypto wouldn't be a solution to anything but based from what I see on how governments work they would rather act quickly rather than thinking out the whole process first. If this issue gets any bigger or this thing happens again on another business who will scam people then I don't think they would have anymore solutions to do and ban crypto immediately just to say they have a solution for what is happening. They would rather put the blame on something then catch the people who committed the crime.

[nrnahid]

I never heard of Satowallet, but what makes it worst is the CEO is deflecting everything and pointing to Telegram scammers as the real culprit behind the members account losing their money on that exchange. It's weird though, but this is just another expensive lessons to learn again, leaving your money in an exchanges is a no-no, I don't know what much are we going to stress on that.

[CryptoBry]

Sadly, this can be another punch on the face of the cryptocurrency industry as many people are going to assume that this industry is truly riddled with scammers whose only intention is to get as much money possible from as much people as reachable. A little fortunate that only around a million dollar is lost though this is already a significant amount of money since, if I am not mistaken, most of the business transactions are based in Nigeria.

And this also explains why this is not a well-known wallet as this might have concentrated its marketing efforts in Nigeria. Indeed, a local-based platform can easily get more business than the one which is based abroad (this is quite true in my country as well). I am thinking that maybe just like the banks having its own insurance system, the government should start now thinking of officiating almost the same system as one of the many protections that customers should be enjoying.

Now, let's hope that the government of Nigeria and Dubai are doing something concrete on this scam. Justice should be served and money should be returned to their rightful owners.

[nrnahid]

With so many trusted and established wallets like electrum, Jaxx, Tustwallet(for those who want to store multiple cryptos), mycelium etc
Why would someone go ahead and start using a lesser known shady wallet like Satowallet?

[darkangel11]

With so many trusted and established wallets like electrum, Jaxx, Tustwallet(for those who want to store multiple cryptos), mycelium etc
Why would someone go ahead and start using a lesser known shady wallet like Satowallet?

Companies like Electrum can't steal your coins because these are software wallets as opposed to online wallets. Only online wallets, exchanges and services that provide you with a bub key but no private key can steal your money and run away. Satowallet had to be an online service, similar to blockchain.com.
I don't trust online wallets and even if you do trust them they are more vulnerable to phishing, where you get redirected to a site very similar to yours and asked to enter your password there, and keylogger trojans.

I'm not racist, but would you trust a Nigerian crypto wallet?



Look at this Nigerian pirate. Dude thinks he's batman. They told him to put on a balaclava so he did. It doesn't matter that he can't see shit but they gave him a gun and told him to look badass. I Imagine this is how that wallet was being operated. Employees were just sitting there told to smile and look professional and when somebody asks say good everything fine, your money safe, all right!

[Inkdatar]

I never heard of Satowallet, but what makes it worst is the CEO is deflecting everything and pointing to Telegram scammers as the real culprit behind the members account losing their money on that exchange. It's weird though, but this is just another expensive lessons to learn again, leaving your money in an exchanges is a no-no, I don't know what much are we going to stress on that.

I’m not also familiar with Satowallet, sad to hear another story of a user got scam. This is a lesson to everyone that you should not be taken for granted, so many victimized of getting scam by an exchange. Exactly a big no to leave a money in an exchange that is not secured. Let us serve this as a lesson and be reminded everyone to be wise on keeping safe our money.

[pixie85]

Nothing new. When you give away your private keys you give away all your rights to cryptocurrency. People are used to sending money here and there. They send it to banks and institutions and pay upfront. You have to forget all you have learned in the fiat world. This is crypto world!

Would you send money to a Nigerian prince or Indian IRS scammer? No? Then why would you send it to an anonymous Nigerian crypto bank that calls itself a wallet.

[Dabs]

Not your keys, not your coins. Some people never learn. Or there are new suckers born every minute. It's the price of tuition, and hopefully the collective or users learn not to trust online or custodial wallets.

[gentlemand]

I'm not racist, but would you trust a Nigerian crypto wallet?

I remember reading the US state department's advice about Nigeria which was basically - don't talk to Nigerians.

I'm sure there are millions of lovely ones. It must be dead embarrassing to be from a country largely known for being filled with dodgy scum. Since the MMM ponzi was super strong in Nigeria the combo of a nation of scammers and a nation of the gullible is a pretty potent one.

I noticed this place is hiding behind KYC as one of its excuses.

https://cointelegraph.com/news/users-of-nigeria-based-crypto-wallet-lose-1m-in-alleged-exit-scam

I expect that little gem to keep on popping up.

[carlfebz2]

Not your keys, not your coins. Some people never learn. Or there are new suckers born every minute. It's the price of tuition, and hopefully the collective or users learn not to trust online or custodial wallets.

Had been advised for a thousand times about  on this matter where people shouldnt really trust up web wallets which they dont able to access their own keys but they do still continue to use it up even with that kind of risk.You would really have that kind of question in mind on what the heck with these people still believing while they are being suggested for countless times about security of their funds.Ending up on using wallets which arent really that popular or known until they do realize and regret if a disaster do already happen to them.

[Kemarit]

Not your keys, not your coins. Some people never learn. Or there are new suckers born every minute. It's the price of tuition, and hopefully the collective or users learn not to trust online or custodial wallets.

Had been advised for a thousand times about  on this matter where people shouldnt really trust up web wallets which they dont able to access their own keys but they do still continue to use it up even with that kind of risk.You would really have that kind of question in mind on what the heck with these people still believing while they are being suggested for countless times about security of their funds.Ending up on using wallets which arent really that popular or known until they do realize and regret if a disaster do already happen to them.

I don't think traders, specially noobs are very complacent on trusting web wallets like exchanges. But throughout the history of Bitcoin, we all know that is not the best practice as anytime those exchanges can be hacked or exit scams and their money will simply disappear in an instant. Perhaps those traders will need to get that experienced first hand, before they really stop or at least not putting huge amount of money in an exchange, expensive lessons, but what can we do? We have time and again, tell them that if you don't have the keys, then it's not your coins, but they didn't heed until they got their first hand experience losing big money here.

[carlfebz2]

Not your keys, not your coins. Some people never learn. Or there are new suckers born every minute. It's the price of tuition, and hopefully the collective or users learn not to trust online or custodial wallets.

Had been advised for a thousand times about  on this matter where people shouldnt really trust up web wallets which they dont able to access their own keys but they do still continue to use it up even with that kind of risk.You would really have that kind of question in mind on what the heck with these people still believing while they are being suggested for countless times about security of their funds.Ending up on using wallets which arent really that popular or known until they do realize and regret if a disaster do already happen to them.

I don't think traders, specially noobs are very complacent on trusting web wallets like exchanges. But throughout the history of Bitcoin, we all know that is not the best practice as anytime those exchanges can be hacked or exit scams and their money will simply disappear in an instant. Perhaps those traders will need to get that experienced first hand, before they really stop or at least not putting huge amount of money in an exchange, expensive lessons, but what can we do? We have time and again, tell them that if you don't have the keys, then it's not your coins, but they didn't heed until they got their first hand experience losing big money here.

True story where people doesnt really care too much until they would experience it and learn from it.Even us experienced users doesnt really have that choice for us not to put up funds on exchange or any web-wallet but the important thing is that we do know on how we do keep and transfer those coins into a much safer place where we do own our keys.
Using up service do have corresponding risk and we can lessen it up if we do know how to follow those safety tips from time to time.