XRP-focused exchange makes exit scam: 246,000 users affected

28 Jun, 2019 | Updated: 28 Jun, 2019
by Manshi Soneji Mamtora
Exchange
XRP-focused exchange makes exit scam: 246,000 users affected

Ireland-based cryptocurrency exchange, Bitsane scammed its 246,000 users and vanished with their funds. 

Bitsane commenced operations in November 2016 and was registered in Dublin under the CEO Aidas Rupsys and CTO Dmitry Prudnikov. It enabled users to make transactions in XRP during the 2017 crypto craze as XRP was not listed on Coinbase, the famous US-based exchange. Ripple had also listed Bitsane as one of the sources for users to buy its coin. 

Account holders mentioned to Forbes that attempts to transact Bitcoin, XRP and other cryptocurrencies began failing in May. The support team clarified that the withdrawals were “temporarily disabled due to technical reasons.” On June 17, the Bitsane official website vanished and its Facebook and Twitter accounts were also deleted.

According to Forbes, one of the investors says, ''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, 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.'' The user reportedly lost $150,000.

Three out of five Bitsane users interviewed by Forbes came to know about Bitsane through the CNBC article headlined ''How to buy XRP, one of the hottest bitcoin competitors.'' in January 2018.

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