Nigerian Crypto Wallet Stole $1 Million in Alleged Exit Scam - Coindoo

Nigerian Crypto Wallet Stole $1 Million in Alleged Exit Scam

Editorial Team Avatar
Sep 27, 2019
2 min reading time

Nigerian cryptocurrency wallet provider, Satowallet, is accused of orchestrating a $1 million exit scam after shutting down its website. The wallet put the blame on its data center providers and Telegram scammers.

The International Business Times reported that Satowallet, which was established in 2017, had started getting complaints dating from April of this year when users found that they could not withdraw funds from their wallets. This was, probably, because the wallets provided do not give users the control to their private keys.

“This past few weeks we have had a series of issues beyond our immediate control, with regards to our data centre providers ( OVH) @OVH . Resulting into delayed and loss of transactions, we hope to get a possible response to resolve this ASAP,”- tweeted the Satowallet CEO.

The Satowallet team then claimed that it was going through temporary technical problems and began accusing Telegram scammers of stealing users’ funds when the platform was in the maintenance phase. A few months later in June, they have stated that the problem had been solved and had implemented know-your-customer (KYC) verification. The KYC verification was required for users to access their funds.

The wallet’s platform suddenly went offline in August. The CEO Samuel Benedict argued that the problem was because of their data center providers OVH, claiming that once the website got back online, there were no more funds.

The CEO also accused Twitter of suspending the Satowallet account for no existent motive. The next month he brought another accusation to OVH, accusing it of using its powers to suspend Satowallet’s Medium account. Weirdly enough, their “powers” ran out, as the Satowallet exchange Medium account is still up.

“Dear users, OVH could not respond to claims but used their powers to contacted medium to suspend our account and insist that we remove every mention of their name and chats. This is more grounds for us to further our suits. #Satowallet” – tweeted the CEO.

As the world of crypto is full of such exit scams, it would be no surprise if Satowallet turned out to be one as well. There have been many instances of ICO startups which have disappeared with the investors’ money once they gathered a hefty sum. Some platforms even stay active for years in order to gain user trust and rack up more crypto before going offline.

Featured image: CareWell Services of Southwest Michigan

* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
Press Releases