Pretty weird that this got moved to the Exchanges board. But whatever. It does indeed pertain to exchanges so I can't complain.
I'd like to know more about the connection between Trade Satoshi in Cryptopia. The founder and designer of Cryptopia got caught attempting to arbitrage Safex tokens between Cryptopia and Trade Satoshi by moving them directly from hot wallet to hot wallet. From an article on
Altcoinbuzz:
We reached out to one of the delisted projects, SafeX. Richard Bate, SafeX advisor, commented:
“Over 18 months ago, Safex was delisted from Cryptopia, apparently due to an “aggressive community member”. The former CTO of Cryptopia, Adam Clark, decided on the spot in Discord to delist Safex because someone (apparently aggressive) asked when the wallets would come out of maintenance.
This seemed like a very unproportional response to a lone member who didn’t represent the entire community. So we did some digging.
Reviewing the known wallets of Safex on Cryptopia, we noticed big trades directly between the hot-wallets of Cryptopia and TradeSatoshi. (The unusual part here is that you don’t deposit to the main wallets on either exchange, you deposit to a personal address so they know how much you’ve deposited.
Our running theory was that someone internally on both sides was attempting to do arbitration trades and managed to lose a lot of Safex in the process.
This was further confirmed later when they didn’t have the Safex to cover the withdrawals of those who had funds left on their Cryptopia account. We saw regular withdrawals from TS [TradeSatoshi] straight to the Cryptopia hot-wallet which co-inside with the timing of when certain members suddenly got their funds back.
The delisting of Safex due to this one community member was a convenient exit strategy so they could save face.
Make it a problem with us, rather than them.
A few months later, we learn that the CTO, Adam Clark, had been “let go” of Cryptopia. My guess is that something was discovered that was bad enough to force one of the founding directors of the company out.
A few months later after that, we find that Adam started working for Trade Satoshi as a Senior Developer.”
Adam Clark had a hand in designing the Trade Satoshi website:
“Cryptopia, Tradesatoshi and Assetylene obviously all look alike because I made/designed each platform, so I guess I have a style maybe,” he said.
https://www.theblockcrypto.com/linked/24750/cryptopia-founder-plans-to-set-up-new-exchangeIs there a possibility he is behind the downfall of both exchanges, or is simply a case of one unreputable individual helping another?
