MapleChange, a small Bitcoin exchange based in Alberta, Canada, has gone offline after claiming that they ‘had no more funds to pay anyone back.’
An hour before deleting its Twitter page; the exchange, by way of an explanation, said that a ‘bug’ had enabled ‘some people’ to withdraw all the funds from the exchange. The exchange’s Twitter handle had less than 2,000 followers.
In the opinion of some experts, the MapleChange ‘hack’ has all the signs of an exit scam. An exit scam is one where established businesses stop shipping orders while continuing to receive payments for new orders.
There was no need for the exchange to delete its social media accounts or, for that matter, completely disappear in the manner that it has. This answers the question as to whether the exchange is in debt to a number of its depositors, albeit a small number. In businesses, such things happen, and that’s the reason we have insurance or bankruptcy courts.
Another signal towards the possibility of an exit scam is the short time span between the announcement of the bug and the complete disappearance of the exchange and its operators.
The domain has been registered at GoDaddy by ‘Flavius P’ and is quite suspicious. Most professional operations, especially those that handle other people’s money, go to some lengths to be above board.
Another significant factor in guessing that this isn’t a hack or a bug but an elaborate premeditated scam, is the timing of the problems. MapleChange.com’s recent traffic statistics suggest that they were most probably doing more business in the last week than they had in recent times. They might have struck early on a Sunday morning when most clients were likely expected to be asleep.
Link to original article here.
With more and more thefts occurring in the Crypto space, a means to protect and secure cryptocurrencies is in the search. Many hodlers have lost their hard-earned money either due to hacks or scams of Crypto Exchanges.
One good initiative could be providing an insurance against Crypto Theft. This will definitely solve for the issue of robberies and give hodlers a secure platform to store their crypto.