Tradesatoshi Exploits ColossusXT Market By De-listing Token?
By Jofor a.k.a. Cyberczar - 2019-05-21
In a recent Medium post
, the ColossusXT team announced that Tradesatoshi, one of the exchanges that supported the cryptocurrency de-listed the coin (with others) without following due process in the bid to exploit the market.
The scam allegation raised by the ColossusXT team stated that Tradesatoshi announced on March 7, 2019 of its plans to de-list the Colx but was prevailed upon to give the team and holders time to withdraw their coins in line with best practices.
The report said that the de-listing which was extended to April 15 was accompanied by suspicious and criminal behavior from Tradesatoshi which led to the seizing of coins deposited by investors on the exchange.
The consequence was that 286 million colx tokens were dumped into the market by wallets associated with Tradesatoshi exchange even while the team was making effort to make sure that community members using the exchange withdrew their assets.
The report said that a user named “Fisherman 2019
” who was in charge of the account supposedly linked to Tradesatoshi continued dumping the coin until May 11, pointing to the suspicion that the exchange intentionally de-listed the Colx with the intention to take advantage of the market manipulation.
Accentuating this claim is the fact that most users on the platform were prevented by Tradesatoshi from withdrawing their assets under the pretext that accounts needed verification through KYC processes before they could make withdrawal, even though this was not part of the Tradesatoshi Term of Service when the accounts were opened.
Complicating issues was the fact that the Tradesatoshi blocked all users holding coins pending de-listing while they wait for unending KYC process.
According to the ColossusXT team:
This fisherman2019 account kept receiving Colx and continued to dump till 11st of May, inline with wallet movements in ColossusXT explorer, which is part of TradeSatoshi Wallet. Therefore confirming this user started dumping before delisting date and continued till emptying the TradeSatoshi wallet...
Complicating issues for the users of the Tradesatoshi platform was the fact that the support team would not respond to queries but block users that used other channels to lay their complaints. Furthermore, they blacklisted emails for complaints.
The Medium post stated that the exchange was found to be operating illegitimately having been dissolved by Company House
since July 24, 2018. The ColossusXT announced that they have filed reports with the police and advised users to keep funds away from exchanges.