Prudnikov’s LinkedIn account has been terminated, and neither of the two could be reached for comment. This latest incident sheds light on a volatile industry that has had doubts cast upon it as an asset management strategy. GateHub and Binance have had their firewalls contravened this past year, but a complete act of disappearance with no notice or explanation is a new scamming technique. Until lately, Bitsane was on the list of exchanges that offer XRP on Ripple’s website. The crypto giant has not responded to the request for a comment.
AI Bots Now Power 67% of Gen Z Crypto Trades, Study Shows
Launched in late 2016, Bitsane gained popularity for providing trading services with XRP, when only a handful of exchanges were offering the service. The exchange was also officially recommended by Ripple for buying and selling XRP, which was put down recently. As the first media outlet to report on blockchain-powered applications, we provide early adopters, developers, and visionary leaders with access to emerging technological landscapes, including wallets and games. CoinGeek presents a unique perspective on blockchain, AI, and Web3, emphasizing the BSV blockchain’s robust enterprise utility and unbounded scalability, as described by Satoshi Nakamoto in his 2008 Bitcoin white paper. Regarding a press release, Bitsane went live in November 2016 registering in Dublin as Bitsane LP in the leadership of CEO Aidas Rupsys, and its chief technological officer as Dmitry Prudnikov.
- Launched in late 2016, Bitsane gained popularity for providing trading services with XRP, when only a handful of exchanges were offering the service.
- Unfortunately, there is also the risk that an exchange is ran by dishonest actors.
- In the group chat, most users wish they stored their XRP tokens on their own crypto wallets instead of trusting Bitsane exchange.
- The information does not constitute investment advice or an offer to invest.
- Multiple account holders in the U.S. say they have filed complaints with the FBI, but all of them are concerned that their cash is gone for good.
- Bitsane’s action is similar to its Polish counterpart Coinroom, which also disappeared overnight in April with an unidentified amount of customers’ funds.
When the bear market was only about to start in early 2018, Bitsane attracted investors by letting them trade XRP before it was listed on Coinbase.
On a Reddit page dedicated to the exchange, multiple complaints about withdrawal problems started appearing about three weeks ago. Bitsane, the Ireland-based cryptocurrency vanished without an inkling last week, possibly getting away with hundreds of thousands of users’ assets invested in them. On May 16, Bitsane Limited filed for dissolution because Zmitrovich wasn’t doing anything with it and the company’s registration was up for renewal. Some of the Bitsane exchange’s victims have found the public filing and suspected Zmitrovich as part of the scam, but he insists accusations against him are unfounded. He says he hasn’t spoken to Prudnikov—who was in charge of negotiations with Azbit—in at least five months, and Prudnikov has not returned his calls since account holders searching for answers began contacting him. Azbit wrote a blog post about the Bitsane scam on June 13, explaining Bitsane Limited’s lack of involvement.
Bitsane and XRP
- But Azbit never ended up using any of the code since the partnership did not materialize, and Bitsane Limited did not provide any services to Bitsane LP.
- Trying to deposit either bitcoin or ethereum to bitsane account in order to purchase XRP.
- Three of the five Bitsane users Forbes spoke to found out about the exchange through the CNBC article.
Bitsane, a cryptocurrency exchange based in Dublin, Ireland, has vanished mysteriously, reportedly scamming millions of dollars from close to 250,000 clients. The location of the money and whereabouts of any of Bitsane LP’s employees remain a mystery to the scam victims, who are unsure about what action to take next. Multiple account holders in the U.S. say they have filed complaints with the FBI, but all of them are concerned that their cash is gone for good. A separate company, Bitsane Limited, was incorporated in England in August 2017 by Maksim Zmitrovich. He wanted to own the intellectual property rights to part of bitsane wallet is generating Bitsane’s code and use it for a trading platform his company, Azbit, was building.
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Get your personal invitation for an event at NYC Sky Room and join us at Consensus 2018, booth #413 at 4th floor. CoinCodex tracks 42,000+ cryptocurrencies on 400+ exchanges, offering live prices, price predictions, and financial tools for crypto, stocks, and forex traders. By May 30, the platform had 246,000 registered users, as seen on Internet Wayback Machine, and was handling $7 million in daily trading. Ripple also listed the exchange on its website until very recently, with a Ripple spokesperson declining from commenting on the latest developments. The users have formed Telegram and Facebook groups where they are raising their grievances. There are a few who have lost higher amounts, including one U.S. resident who spoke on the condition of anonymity.
He spoke to Forbes in person and preferred his name not be disclosed. Peter has been covering the cryptocurrency and blockchain space since 2017, when he first discovered Bitcoin and Ethereum. Peter’s main crypto interests are censorship-resistance, privacy and zero-knowledge tech, although he covers a broad range of crypto-related topics. He is also interested in NFTs as a unique digital medium, especially in the context of generative art. Given the recent bullish value of Bitcoin, which is trading at $11.370, as of press time, the exchange has chosen a suitable time to run away with clients‘ funds.
Bitsane crypto exchange disappears after reportedly scamming investors
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The team of the exchange had previously written that Bitsane was disabled over technical issues and would be operational again soon. Bitsane had at least 246,000 users according to data on Internet Archive’s Wayback Machine. On March 31, the last time CoinMarketCap recorded its volume, the exchange facilitated $7 million worth of crypto trading volume. According to a website, Bitsane had 246,000 users registered as of May 30.
Several exchanges like GateHub and Binance have been breached by hackers this year, but an exchange completely ceasing to exist with no notice or explanation is far more unusual. A popular cryptocurrency exchange for XRP investors disappeared off the web last week. Meanwhile, crypto platforms are again becoming a hot target for cybercriminals.
Token sales are only suitable for individuals with a high-risk tolerance. Only participate in a token event with what you can afford to lose.This press release is for informational purposes only. The information does not constitute investment advice or an offer to invest. 4th biggest annual blockchain summit Consensus 2018 is being held on May at New York city. Bitsane team is on the way, presenting their platform and making a giveaway of promocodes with trading fee discounts.
Its daily trading volume was $7 million on March 31, according to CoinMarketCap. Forbes reports that last week, the Bitsane crypto exchange based in Ireland pulled off an exit scam, going offline and disappearing with its users’ Bitcoin and XRP. Once the account is set up, platform users can go to the Exchange page and start trading various cryptocurrencies. However, by June 17, the exchange’s website went offline without any notice, even its social media accounts – Twitter and Facebook – were deleted. The Linkedin account of its CTO Dmitry Prudnikov was also deleted, while no necessary information is available on the profile of the exchange’s CEO Aidas Rupsys.