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Bitsane Cryptocurrency Exchange Vanished: Another Scam in Crypto Industry?

Dublin, Ireland based cryptocurrency exchange absconded with users money which apparently deceived 246,000 customers and fled away with their hundreds and thousands worth of crypto assets. The updates have come through Forbes and then an Irish publication on 27th, 28th June respectively.

Earlier, the 246,000 of userbase was shown by Bitsane which was revealed through a Wayback Machine- the San Francisco based nonprofit organization that shows the digital archive of the World Wide Web and other information on the Internet. On the other hand, data from CoinMarketCap shown that till March 31, 2019, the daily traded volume of the company was  hardly $7,206,418 (1,760 BTC)

Ripple [XRP], Zebpay & Bitsane

Reportedly, through social media channels, there are several users are claiming to be affected by this exit scam that once again left the crypto lovers in dismay. One Indian user on Twitter claiming to have lost approx.… 6,400 XRP tokens and asking Zebpay for the help to recover his tokens, which the company advised him to connect with the receiver of the token, as cryptocurrencies once transacted, it’s not possible for the third party to reverse them back in the depositors account.

Another tweet came across by a claimed U.S. Army Veteran, where his $7000 worth of crypto assets are missing. In return of his reply one user while commenting him advised using hardware wallets like Ledger to keep their digital assets secure.

Forbes further displays that through a group chat on the messaging apps like Telegram and Facebook it has become noticeable that over 100 people have lost a huge amount and the figure varies from €5,000 (~$5,700) and €132,000 (~$150,000) worth of Ripple (XRP) and Bitcoin which kept in Bitsane.

All of the victims are communicating the similar dialogue that Bitsane has run away without any notice and they aren’t able to recover their amount. Allegedly, the awkward behavior from Bitsane started in May 2019, and reportedly users were started facing issues while withdrawing their funds. Bitsane often tried to cover up their misdeeds by reasoning out that due to some technical issues the feature is temporarily disabled. However, the situation of the crypto investors become worse after finding out that neither Bitsane Website nor their Social media accounts exist anymore. Every trace of the company has been deleted and emails to Bitsane accounts started to bouncing back as undeliverable. In fact, Bitsane CEO, AidasRupsys and CTO, Dmitry Prudnikov aren’t reachable by the Forbes for further exploration into the case. The LinkedIn profile of Dmitry Prudnikov is also not accessible.

Earlier on Nov 18, 2016, the famous PR publisher PR Newswire announced about the launch of Bitsane cryptocurrency platform which kicked off the same year on Nov 16, the PR shows that Bitsane LP was registered in Dublin under CEO AidasRupsys, and its CTO was Dmitry Prudnikov.

Ripple [XRP], Bitsane & Azbit Cryptocurrency Exchange

However, an interesting revelation came into the notice which allegedly shows that during August 2017, a separate organization named “Bitsane Limited” was also registered in England by Maksim Zmitrovich. He wanted to own the intellectual property rights to use Bitsane’s code to deploy in his other company, Azbit, a trading platform. Although, the partnership didn’t happen because Bitsane LP developers who were chosen as the contractors to develop the coding for Azbit crypto exchange wanted to have Bitsane’s name appear on the new legal entity that Maksim Zmitrovich was founding. As a result, Bitsane Limited and Bitsane LP did not exchange any of the services and partnership did not occur.

On June 14, 2019, Azbit wrote a blog and cleared that Bitsane Limited’s has no involvement with Bitsane LP. Moreover, Maksim Zmitrovich isn’t in touch with Dmitry Prudnikov from the past 5 months who was negotiating with for Azbit project and all the public acquisitions against Zmitrovich’s involvement with the Bitsane cryptocurrency exchange scam weren’t founded factual.

The blogs read:

“Crypto community began to mistakenly link Azbit project with this notorious exchange. Our team wants to ask you not to make hasty conclusions and investigate the issue together… Bitsane LP and Bitsane Limited are two independent entities…”Bitsane Limited carried out no economic or trading activity.”

Image by mohamed Hassan from Pixabay

Tags: Bitsane, Exit Scam, Cryptocurrency Exchange, Cryptocurrency, Digital Assets, Forbes, Ripple (XRP), Scam, Zebpay, Hardware Wallet, Ledger, Azbit,Dmitry Prudnikov,Maksim Zmitrovich,AidasRupsys.

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