Ireland-based cryptocurrency exchange Bitsane disappeared without a trace last week, likely taking hundreds of thousands of users’ assets with it.
Account holders told Forbes that attempts to withdraw bitcoin, XRP and other cryptocurrencies began failing in May, with Bitsane’s support team writing in emails that withdrawals were “temporarily disabled due to technical reasons.” By June 17, Bitsane’s website was offline and its Twitter and Facebook accounts were deleted. Emails to multiple Bitsane accounts are now returned as undeliverable.
Victims of the scam are comparing notes in a group chat with more than 100 members on the messaging app Telegram and in a similar Facebook group. Most users in the groups claim to have lost up to $5,000, but Forbes spoke with one person in the U.S. who says he had $150,000 worth of XRP and bitcoin stored in Bitsane.
Bitsane’s disappearance is the latest cautionary tale for a cryptocurrency industry trying to shed its reputation as an unsafe asset class. 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.
Bitsane had 246,000 registered users according to its website as of May 30, the last time its homepage was saved on the Internet Archive’s Wayback Machine. Its daily trading volume was $7 million on March 31, according to CoinMarketCap.
“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,” says the user who claims to have lost $150,000 and asked to remain anonymous. “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.”
Testimony of Vikas Tak one of those affected in this scam
In 2017 I saw ripple website (www.ripple.com). I found information of their XRP coin on their website. After reading all information on Ripple.com regarding XRP coin. I decided to purchase some XRP, Ripple.com suggested some crypto exchanges on their website. Bitsane Exchange one of them.
So I choose Bitsane Exchange to buy XRP. I registered my account on Bitsane Exchange in 2017, and purchased some XRP. I hold my XRP coins on Bitsane Exchange. Few days ago I decided to withdraw my XRP coins to some other Exchange. But when I try to withdraw my XRP coins they disabled my XRP withdraw. I contact Bitsane support team, but they didn’t answer my question. Few days ago I think 7 to 8 days ago they closed their website & run away. So they do very big scam.
I post about their scam on Reddit. I found many Victims. A telegram channel & Facebook Group is started for victims conversation. Can you please post about their scam on your website. CNBC also suggest to buy XRP from Bitsane Exchange. It is one of the biggest scam in crypto community.