BiteBTC Crypto Exchange Pulls an Alleged Exit Scam. CoinMarketCap Warns of Withdrawals Being Halted
BiteBTC, a little-known cryptocurrency exchange allegedly based in Singapore, has halted withdrawals and is blocking clients’ accounts, several affected users told Forklog.com. A similar warning was also posted by CoinMarketCap.
From what we know at this point, on several occasions the exchange asked traders to provide sources for their funds and proofs of ownership. BiteBTC also required users to prove their identity by providing bank account or credit card statement to ensure a full compliance with AML/KYC rules.
However, even after successful verification users had their accounts blocked while trying to withdraw assets from the exchange.
BiteBTC’s Twitter page suggests thatthe exchange is based in Singapore. According to the official website, First Financial LLC, allegedly based in Seychelles, seems to be BiteBTC’s operator, but the domain for the firm’s website is registered in the U.S. Therefore, it’s not immediately clear to which regulations the exchange is subjected.
Owner of Singapore based firm FinanceFirst Pte. Ltd has provided more insights in a recent blog post. He claims that BiteBTC website has fraudulently stated the company as an operator. He also filed a police report against the exchange for a theft of identity.
#BiteBTC crypto #exchange is accused of stealing an identity of FinanceFirst Pte. Ltd. Users reported withdrawals are being halted and accounts blocked without clear reasons. Possibly another one exit scam is happening right now. Be careful with your money! #bitcoin pic.twitter.com/WtFEpcpngi
— Nick Schteringard (@schteringard) 2 июня 2019 г.
First warning signs in regard to BiteBTC appeared back in February, when users started complaining about withdrawals being delayed or halted with no clear reasons.
Better avoid this exchange, you’ll never see your money back.
Withdrawals are not possible on this exchange.
— JellevH (@haljim01) 25 февраля 2019 г.
Some malicious actors have already tried to scam users out of their money by promising to rectify accounts for a small payment of 0.01 BTC. They send fraudulent emails from email@example.com and ask clients to make a transaction to the following address: 1BFS674vrWKoaiP6oSbynhLYgdncL6odDy.
Users also told ForkLog.com that the exchange offered higher prices for arbitrage and reported high trading volumes.
Subscribe to our Newsletter<
- OneCoin Ponzi Scheme: Scam of the Decade Continues in 2020’s Oceania
- Dead Man’s Chest: A Story of QuadrigaCX CEO Gerald Cotten Who Took $137 Million Worth of Users’ Assets to the Grave
- Another Pyramid That Could: Cashbery, Crypto, and the Legacy of a Post-Soviet Scam Legend
- What Is DEX?
- Scam of the Decade: the Story of a Doctor of Law Who Organized the OneCoin Ponzi Scheme and Vanished With Billions of Euros
- From Dublin With Love: the Strange Case of Bitsane’s Disappearance With Millions of Euros
- CoinMarketCap Launches New Ranking Methodology Integrating Exchange Liquidity
- Eosfinex Opens for Trading, Launches on Mainnet EOS