Nigeria based cryptocurrency wallet Satowallet has been reported to be in involved in an exit scam worth $1 million. The company was launched back in 2017. According to an International Business Times report, the company has blamed the scammers on Telegram messaging platform for stealing users’ funds during their maintenance period.
The wallet’s users started to report issues in April that they were not able to withdraw funds. But the company did not do much to resolve those issues. Later the company’s executive promised to solve the technical problems that had halted users withdrawals.
In June, Satowallet implemented the KYC verification process for customers and claimed that they had resolved all the issues. But later in August, the company went offline. CEO of the company Samuell Ben, in a tweet, blamed their data center providers, OVH.com. He wrote that OVH used its power to suspend wallet’s medium account and failed to respond to their claims.
Dear users, OVH could not respond to claims , but used their powers to contacted medium to suspend our account and insist that we remove every mention of their name and chats. This is more grounds for us to further our suits . #Satowallet pic.twitter.com/qm82UDKB4F
— CEO Satowallet Exchange (@thesamuelben) September 26, 2019
Earlier the company had also launched its exchange platform SatowalletEx. When the company restored its website, all the funds of users had vanished. And the CEO claimed that scammers on Telegram had stolen the funds while the site was under maintenance.
Let us know in comments what do you think about the rise in crypto scams, and what measures people can take to avoid become victim of one?