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Canadian Bitcoin Exchange Disappears with Signs of Exit Scam

Redwan Eid | Oct. 29, 2018
Canadian Bitcoin Exchange Disappears with Signs of Exit Scam

October- 29, 2018 | AtoZ Markets

According to media reports yesterday, Canadian bitcoin exchange MapleChange announced on Twitter that they “had no more funds to pay anyone back”, after an alleged hack.

The Alberta-based platform reportedly went offline and deleted its Twitter page almost one hour after the announcement, without trying to make any repairs.

In the announcement, the exchange said a “bug” enabled “some people” to withdraw all of the funds on the exchange,

As the MapleChange Twitter account had less than 2,000 followers, the number of people the exchange was indebted to must have been little, which is the good news regarding this exit scam, as observers read, associating the quick disappearance of the exchange and the closure of all its social media account, shortly after the announcement they made.

Analysts read as well that having the domain registered at GoDaddy by one “Flavious P” is another sign to suspect the exchange.

Analysts started to refer to a premeditated scam

Joseph Young- a crypto-centric journalist and analyst, wrote on Twitter saying: “A small crypto exchange pulled off an exit scam, taking all customer funds.

There is no incentive for using small exchanges. Use established exchanges that are regulated, & transparent.

Small exchanges also focus on maximizing profitability, not security or investor protection”

In his turn, Changpeng Zhao, the well-known CEO of Binance, referred to that consumers should avoid dealing with exchanges which have no access to “cold wallets” at all costs, as a lack of proper storage solutions can speak of the platform’s intent and goals.

MapleChange.com’s recent traffic statistics, show that they might have done more business over the last week than they had in recent times. Meaning, they might have struck early on a Sunday morning when they likely expected most clients to be asleep, the thing that constitutes as another sign of a probable exit scam.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.