Canada’s MapleChange Crypto Exchange Hacked, Loses All Funds in Exit Scam
A Canada based-Bitcoin exchange, MapleChange based in Alberta, announced on Sunday morning, that they have been a victim of a hack and have lost all their customer’s funds.
The exchange also revealed that it cannot pay back the customers and had to shut down all exchange operations, including its social media channels.
The exchange took to Twitter to explain that “due to a bug,” an unnamed group of individuals managed to withdraw funds, adding that it is conducting a “thorough investigation”. Until the investigation regarding the attack is over they would not be able to refund anything to the users.
Joseph Young, a crypto-centric journalist, and analyst was blunt, explaining that MapleChange had likely pulled off an “exit scam”, later bashing small exchanges, which he believes are only focused on maximizing profitability while disregarding how its customers (and their funds) are treated and managed.
A small crypto exchange pulled off an exit scam, taking all customer funds.
There is no incentive for using small exchanges. Use established exchanges that are regulated, & transparent.
Small exchanges also focus on maximizing profitability, not security or investor protection pic.twitter.com/iKEO8rDv5z
— Joseph Young (@iamjosephyoung) October 28, 2018
Following the previous tweet, the exchange further tweeted explaining the situation:
“Because we have no more funds to pay anyone back, the exchange has to close down, unfortunately. This includes all our social media channel.”
Such dramatic turns of events have also raised the fear of an Exit Scam by the exchange, taking all the funds of the customers. Within an hour of the announcement, the exchange pulled down all its social media channels and closed its website which further indicates the intent of the exchange owner.
However, there is a specific way of stealing users’ funds that are known as ‘exit scam.’ In general, any site related to virtual currencies creates a semi-functional product or service, gains the trust of the community, and when it has gathered an important amount of funds, the platform closes and takes all the money from their clients.
There wasn’t any reason for the company to get rid of all its social media pages and disappear. The company owes multiple people money, these things are common in the business world. Users still think that insurance and bankruptcy courts would have been a better strategy for the company.
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