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Singapore Bitcoin Exchange BiteBTC.com Claims Data Center Fire on Proof of Keys Day: Exit Scam?

TweetShare A bitcoin exchange in Singapore reported on January 3 that on New Year’s Day their data center experienced a “fire.” Fears of an exit scam began to mount. According to them, this fire results in 7% of users losing access to their accounts. The events coincided with the first annual Proof of Keys event.…

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A bitcoin trade in Singapore reported on January Three that on New Year’s Day their information heart skilled a “fire.” Fears of an go out rip-off started to mount. According to them, this hearth leads to 7% of customers shedding get entry to to their accounts. The occasions coincided with the primary annual Proof of Keys match. BiteBTC.com wrote on January 3:

On January 1, 2019, a fireplace took place within the information heart the place the trade servers are situated, on account of which a part of the knowledge at the primary and backup servers was once destroyed.

All crypto cash wallets are protected, however we want time to revive the steadiness sheets and buying and selling historical past of about 7% of investors from previous backups.

We ask to fill within the shape to the fortify carrier with the indication of your contemporary transactions and operations with wallets.

We say sorry and ask to regard this case with working out.

They equipped no additional proof of this knowledge heart hearth. Evidence would possibly have integrated a neighborhood information record, a police record, anything else. They merely requested the customers to be affected person and believe them. Too many investors have observed this kind of factor ahead of.

Users Loses 2 Bitcoin

CCN realized of those occasions when a petrified consumer wrote to us.

Not positive who to speak to about this. Bitebtc.com closed its doorways and stole everybody’s cash, even mine. I had so much with this trade. I’m in tears presently. I can’t log into their web page in any respect.

I’ve misplaced about 2 bitcoins. I’ve by no means been this unhappy. How can an trade based totally in Singapore thieve $67 million and disappear ?? I stuffed out the shape at the touch us web page as asked of their newest information replace with the hearth. I despatched that Jan. 3, after visiting their web page that day once I attempted to check in and discovered the device steadily stated I didn’t have an account on there. That’s once I knew. I clicked ‘News’ on their header phase and observed the most recent information of the hearth that it appears happened. I’ve now not heard from bitebtc.com but and I don’t assume I can. This isn’t truthful in any respect.

CoinMarketCap.com has up to date the web page on BiteBTC with the next message:

CoinMarketCap.com has put up a warning regarding BiteBTC.

7% or 100% of Pre-Existing Users?

This consumer is solely one of the. The trade introduced in January of 2018. At time of writing it’s ranked 35th on the planet by way of quantity. However, expanding studies and proof illustrate that reported volumes might not be devoted. Several customers on Twitter had been complaining in regards to the outage:

As quickly as we won phrase of those occasions, CCN wrote to the trade. We sought after to understand when this “7%” of customers may just be expecting to have get entry to to their accounts restored.

It can be preferable to record that an trade was once doing the precise factor.

Sadly, we will have to as an alternative record that we even have now not heard again from them. Our self assurance is ready the similar as our nameless informant’s.

The query arises: the place is all this quantity coming from? Again, exchanges are known to fake volume. But one has to surprise: are new other people signing up for the trade? CCN realized that it’s conceivable:

The activation for this account is the one touch this reporter has won from BiteBTC. Notably, they require accounts to be verified ahead of even creating a BTC deposit, which is a superb signal so far as an ongoing rip-off is going.

BiteBTC.com Uniquely Fails Proof of Keys

Proof of Keys is an match fomented by way of longtime Bitcoin investor Trace Mayer. It reminds exchanges of the significance of solvency and that Bitcoin belongs to its house owners. It additionally encourages Bitcoiners to take into account that they simply actually personal the Bitcoin for which they possess the keys. Some exchanges were said to be “failing” the event.

BiteBTC has failed spectacularly. The query of solvency is just one that must be responded.

The query of timing is fascinating. They declare that the knowledge heart hearth happened on January 1, however customers didn’t get started experiencing account get entry to problems till January 3, which may be when the trade reported the “fire.”

When you’re dealing with thousands and thousands of greenbacks of folks’s cash, somebody has to paintings on New Year’s Day. That turns out obtrusive. Did they very easily record the hearth at the day after they, and each and every different cryptocurrency trade, may just relatively be expecting a share in their customers to make withdrawals?

BiteBTC: Another WEX Situation?

Another query is that in their markets themselves. At time of writing, BTC/USD was once buying and selling about $300 upper than somewhere else. This is a tactic used by scam exchanges up to now to inspire customers to make deposits.

As you’ll see, BTC is buying and selling at BiteBTC a couple of hundred greenbacks upper. A common tactic for bancrupt exchanges: turns out a very easy arbitrage alternative. Until you’ll’t withdraw your budget in any respect.
Here is the shifting moderate on the identical precise time in line with Preev.

Users are nonetheless in a position to create new accounts. New customers can join accounts. Old customers can’t get entry to their accounts. If the location continues, it’s a vintage Ponzi scheme.

CCN will record again as main points grow to be to be had. We intend to touch native government in regards to the validity of the “data center fire,” for something.

Featured symbol from Shutterstock.

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