HEX Moves 800 ETH From Its Wallet - Another Exit Scam?

Around 800 ETH, worth about $100,000, has moved from a wallet associated with the HEX token sale.  This has led many to suspect it was the beginning of an exit scam

28 December 2019 | AtoZ Markets – Following the 2017 ICO boom, one might think that the days of projects claiming gargantuan returns are long gone. However, a new crypto project emerged earlier this month that proved, once again, that there’s no stopping crypto scams. HEX, a cryptocurrency project that promised some juicy returns on investment, seems to be unfolding as a scam. 

Suspicions rise as 800 ETH withdrawn from HEX account

Most recently, a Reddit user pointed out that 800 Ether tokens were withdrawn from the wallet used to store the proceeds from HEX token sale and 770 Ether were sent to two crypto exchanges – Binance and Bitfinex.

The claims are supported by the evidence from Etherscan. Etherscan shows that an initial transaction of 500 ETH went to Bitfinex, while other smaller transactions seemingly went to Binance.

“500 ETH went out yesterday, and straight into Bitfinex a few minutes later,” the Reddit post stated.

Is HEX project scam or reliable?

On December 2, Richard Heart, a blockchain thought leader, and cryptocurrency investor launched a new cryptocurrency, dubbed HEX. Launched on Ethereum via a Bitcoin UTXO snapshot, the project claims it can “do-over 10,000x returns in under 2.5 years.”

To support his outlandish claims, he even admitted that the project sounds like a scam. However, he explained that the HEX is “designed to increase in value faster than anything else in history.”

The user also pointed out that the HEX ICO address still has over 46,000 ETH left to be withdrawn. The controversy even got steam when Heart refused to reveal the owner of the wallet address. The post reads:

“There’s still over 46,000 ETH that can be withdrawn and liquidated by whoever controls this address, but Richard Heart, who created the contract says nobody needs to know who that is.”

Critics speak out 

Of course, the sentiment surrounding HEX hasn’t been overly friendly. In a Medium article titled “Under a Hex,” writer Goldman Sats explained that this project is worse than a Ponzi scheme, and is only designed to enrich its developer. Goldman explained:

“Not only will Richard control close to half of all HEX after the first year, but it is the first token I have seen to have its founder’s perpetual self-enrichment baked into the protocol.” 

The writer also sheds light on the staking system the coin will use to return a large percentage of the coins to its creator. As Goldman explained, Heart will own the Origin Address of the asset. He will also control about 45 percent of all the HEX in the staking pool after the first year.  

“So say someone ends their stake early and is penalized 1 million HEX, Richard receives 775,000 HEX himself, leaving only 225,000 coins to be divided amongst the thousands of other stakers.” The writer concluded. 

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