Unknown parties chose the winter solstice to target the UK-based cryptocurrency exchange Exmo, shoveling Bitcoin out of hot wallets on the exchange.
Cointelegraph is reporting the company noted suspicious withdrawals today, Dec. 21, as Jupiter and Saturn prepare to conjoin, and is locking down certain kinds of withdrawals in order to protect the assets.
In addition to Bitcoin, Helen Partz reports Ethereum, Ripple, Tether and ZCash assets were also affected.
A security investigation is pending.
Exmo’s response, in some ways, mirrors what OKEx did after Star Xu was apprehended by law enforcement. The exchange stopped withdrawals, which led to the widespread perception of panic at best, and self-serving corruption at worst.
Even before the potential threat and subsequent withdrawal lockdown, some investors were criticizing Exmo’s practices for verification and related blocks on withdrawals.
“I am(sic) usually don’t verify accounts on exchanges and I trade on many exchanges,” wrote a user with the handle u/DXGao a year ago on Reddit. “Now here’s EXMo story. My withdrawl locked again and I am not sure what flag triggered in their security management team. However I provided all required information what EXMO asks, and they says like this. It’s already been past 6 months, EXMO asks me send screenshot of resource when I send my btcto EXMO. How can I find it after 6 months. If I can’t provide it, they will not unlock withdrawal?
Is this legal and exchange operation?(italics added)”
Here’s what another user had to say even further back, in 2018, at Bitcoin Talk:
“This site is a SCAM!!! First they will have no problem taking your money and then any time you try to withdraw it will be a big hassle for days while they play with your money before finally if ever sending the withdraw. They refuse to give tx id’s with withdraw so they can hide how they are just keeping your money and gambling with it until they feel like releasing it. Now after all these silly issues from this more and more sketchy site. They set up my sms verification, everything works to get it set up including me getting a text to confirm it works etc. Then as soon as i log off, next time i try to log in i see there is no button to send an sms and surprise surprise no sms is ever sent. The pathetic online “support” wont do anything to help and tries to get you to just wait longer. Don’t worry we will just use your money for a few months while you get even more pissed off. . . This is essentially criminal behavior and all need to be very careful dealing with these scammers.”
The new block on withdrawals is not likely to endear this segment of investors to the platform. It may or may not be something you’d characterize as a “scam” outright, but any time an exchange makes it hard (or impossible) to withdraw, it’s right to question any potential self-serving interest. As for the “hack” – we’ll see.
