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Report: Bitsane, an Ireland-based Crypto Exchange Shut Down and Vanished with User Funds

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Bitsane shuts down

Bitsane, an Irish crypto exchange shut down all operations earlier this month and disappeared with its users’ funds. Prior to shutting down, the exchange’s users had begun facing withdrawal problems. The firm dealt with several crypto coins including bitcoin (BTC) and ripple (XRP). A report unveiled this information on June 27.

According to a publication, the exchange’s support team wrote emails to users notifying them that it had suspended withdrawals temporarily because of technical issues. However, this turned out to be an exit scam. By June 17, the exchange’s site was offline and its Twitter and Facebook were deleted. On top of this, the email addresses are also not in service. Trying to send an email to any Bitsane account now shows that the mail is undeliverable.

To add salt to the insult, the exchange’s operators deleted the Linkedin profile of its CTO, Dmitry Prudnikov. Also, the profile of Aidas Rupsys, the exchange’s CEO does not have any important details. At the moment, both the CTO and CEO are unreachable. 

Total Amount Lost Remains Unknown

At the time of writing, it is still unclear how much the exchange disappeared with. Some of its approximately 246,000 users came forward to express their grief. They claimed to have lost that ranges from thousands to hundreds of thousands of Dollars.

One user that claimed to have lost 150,000 said,

I was trying to transfer XRP out to bitcoin or cash or anything, and it kept saying ‘temporarily disabled.’ I knew right away there was some kind of problem,

He added,

I went back in to try to look at those tickets to see if they were still pending, and you could no longer access Bitsane.

Following their losses, the victims of this event took to Facebook and Telegram groups to exchange notes.

Bitsane went live three years ago. The exchange quickly scaled the list of leading crypto exchanges due to providing XRP trading services. At the time of its launch, only a few exchanges had listed XRP. As a result, Ripple endorsed it for buying and selling XRP. Due to this, the general public did not suspect that the exchange would turn out to be fraudulent. When reached for comment, a Ripple spokesperson did not respond.

The platform’s operators chose the perfect time to exit the market seeing that bitcoin is currently bullish. On the date that the exchange disappeared, BTC was trading hands around the $9,000 level.

This news comes after Poland-based Coinroom shut down its operations overnight April this year. Similar to the case with Bitsane, the amount lost in Coinroom’s exit scam is still unknown.

Also, the bullish momentum in the crypto sector has attracted cybercriminals once again. Yesterday, Bitrue lost over $4.5 million in ADA and XRP following an attack. Prior to this Binance lost $40 million worth of BTC after hackers gained access to its wallets.

Do you think there are other fraudulent crypto exchanges that are waiting for the prime time to exit the market? Let us know in the comments below.

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