Monday, June 17, 2019

Purebit Korean Exchange Exit Scams Taking 13,000 ETH

A new exchange in Korea called Purebit took the money and run. The exchange that opened its doors not so much time ago has taken a significative amount of money from their customers. Last month another exchange called MapleChange also claimed to have been hacked and took a significative amount of investor money with it. 

Purebit Exit Scam

A centralized exchange called Purebit has performed an exit scam successfully according to information of Heslin Kim, from Korean Cryptocurrency and Blockchain News. While exit scams are not a new thing in the cryptocurrency space, this one was a little strange. Normally the kind of people that performs these schemes wait till exchanges and ICOs get bigger to exit these scams.

But not this time. Purebit opened its doors not so long ago, managing to get some important attention from investors. According to the source, they have taken more than 13,000 ETH from investors. At the time that this article is being written, the Ethereum price was at $210. So the amount that was scammed was more than $2.7 million.

The owner of the exchange posted in his own Kakaotalk account (a popular instant messaging app) that he was sorry, in a formal way. The media channels that the exchange had on Kakaotalk are now empty and closed.

This is a reason why new exchanges have a difficult time making themselves a place into the cryptocurrency investment market. Investors are not willing to put their money behind a new startup knowing that it could turn out this way. Instead, they go to known big exchanges that offer more reliability. Exchanges like Binance or Coinbase.

Not The First, Not The Last

Sadly this is not the first time that an exchange has pulled and exit scam. Last month something similar happened to another exchange. MapleChange claimed that they had been hacked and that due to a vulnerability they had lost all of their funds. Also, they closed their social accounts and took down the page of the exchange.

purebitMost people thought this was also an exit scam from the people of MapleChange. After a while, they got their social media accounts up and started repairing all the damage. Sadly this has not been the case with Purebit. They have not claimed being hacked at all.

Investors will surely pursue legal actions against the owner of the exchange according to Korean Laws, seeking restitution of their crypto assets.

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