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Blockchain, cryptocurrencies, and insider stories by TNW.

CNBC-shilled cryptocurrency exchange Bitsane pulls exit scam on 246K users

Please don't keep your crypto on an exchange

exit scam, bitcoin, cryptocurrency, blockchain

Irish cryptocurrency exchange Bitsane has pulled an exit scam and disappeared with hundreds of thousands of dollars in cryptocurrency belonging to its users, reports Forbes.

Bitsane’s website, which reportedly boasted 246,000 registered users, has been offline since (at least) June 17, when its Facebook and Twitter accounts were noted to be offline. LinkedIn accounts for key employees have also been scrubbed.

This did not age well

The company itself filed for dissolution on May 16, but curious circumstances – including a separate company (Bitsane Limited) incorporated in the UK in 2017 – have attracted doubt.

According to Forbes, affected users have been comparing losses in a Telegram group. Most report up to $5,000 worth of cryptocurrency missing. However, one US-based investor told reporters Bitsane had vanished with $150,000 worth of Bitcoin and Ripple (XRP) they had been storing on the exchange.

Sadly, Bitsane got its big break during 2017’s “crypto-mania.” When mainstream media outlet CNBC infamously “educated” readers on how to buy Ripple as its price approached all-time-high, it actually advised investors to purchase Bitcoin and Ethereum on Coinbase and exchange them for XRP using Bitsane.

Three of the five users Forbes spoke to heard about Bitsane through CNBC‘s article. The exchange was also reportedly featured on Ripple‘s website until recently.

Ripple’s ‘How to buy XRP’ page, March

Multiple Bitsane users in the US are said to have reported the situation to the FBI.

Please, if you’re keeping your cryptocurrency on an exchange for any extended period of time – just don’t. Get a wallet.

Published June 28, 2019 — 10:16 UTC