BITSANE

DESCRIPTION OF EVENTS

“Account holders told Forbes that attempts to withdraw bitcoin, XRP and other cryptocurrencies began failing in May, with Bitsane’s support team writing in emails that withdrawals were “temporarily disabled due to technical reasons.” By June 17, Bitsane’s website was offline and its Twitter and Facebook accounts were deleted. Emails to multiple Bitsane accounts are now returned as undeliverable.” “User groups on messaging platform Telegram and Facebook reveal users claiming to have typically lost up to $5,000, with Forbes citing an anonymous U.S. resident who says he had $150,000 in XRP and bitcoin (BTC) on the exchange prior to the company’s disappearance.” "Lithuania-based law firm Baltesco told Fora that it is representing Bitsane and Aidas Rupsys, one of its founders and its chief executive." “According to the law firm, Rupsys claims he has not accessed any funds that were held on Bitsane because he claims that he was “not connected to the bitsane.com platform”. The letter added that there has been a breakdown in communication among some senior staff in the company.”

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Featured in a CNBC article and on the Ripple website, this exchange gained customers around the world, only to ultimately go offline and leave customers with little recourse. From what I can tell, “Bitsane was registered in Ireland as Bitsane LP, with Aidas Rupsys listed as CEO and Dmitry Prudnikov as CTO”, however there doesn’t appear to have been much oversight into the storage or management of funds. It seems unlikely that proper cold storage was used and I can find no record of any auditing.

Exit Scam? Dublin-Based Exchange Bitsane Vanishes With Users’ Funds (Feb 22)
Bitsane.com Scam Victims (Feb 22)
Irish Crypto Exchange Bitsane May Have Disappeared With Users' Funds - CoinDesk (Feb 23)
CNBC-shilled cryptocurrency exchange Bitsane pulls exit scam on 246K users (Feb 23)
Crypto exchange Bitsane has launched an internal investigation after its services went dark - Fora (Feb 23)
Bitsane – Reviews, Trading Fees & Cryptos (2020) | Cryptowisser (Feb 23)
SlowMist Hacked - SlowMist Zone (Jun 26)
The 23 exchange hacks of 2019 (Aug 8)
Worldwide crypto & NFT rug pulls and scams tracker - Comparitech (Dec 15)

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