Soxex Collapse

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Soxex

Launched by anonymous individuals and not appearing to be connected to any banking, the Soxex exchange gained popularity based largely on give-aways to new customers.

Blockchain analysis showed that at least $1m USD was transferred to the exchange before it disappeared with no further word.

The country for this case study is not yet known.

About Soxex

"Based on solid technical support, innovative business models and functional design, Soxex plans to rank among the top 20 exchanges in the world in one year, on the trading soxex takes full advantages the liquility of mature exchange aggregates the depth of 95% of global token transaction and exchanges the trading experience while providing users with the opportunity to move within the arbitrage."

"SOXEX is innovating a social trading exchange with Free IEO. Now register to receive 0.001 BTC, and refer to one friend for 0.0005 more." "SOX exchange token will start free IEO from 2nd of July." "Only Need ID Card Front Side Pics." "Click On The Below Link Than Make Your Mobile Brouser In Desktop Mode And Select Language In English Than Signup."

"Soxex exchange has been exposed to abscond with the funds. At present, the website of the exchange has been unable to open, and hundreds of millions of funds of investors have been swept away, involving BTC, ETH, HT, OKB and other mainstream currencies. Over 1 million USDT has been flowing into other exchanges."

"According to PeckShield Digital Asset Escrow System (AML) data, this morning, Soxex exchange was suspected of running, the current exchange website has been unable to open, taking away hundreds of millions of investors, involving BTC, ETH, HT, OKB, etc. Mainstream currency. PeckShield security personnel based on the partial address (incomplete statistics) submitted by the victim, locked the target asset (USDT part) flow to the discovery, the target address at the beginning of 1G8cEC, 1GLsou summed up more than 1 million USDT, after one or two transfers, then The fire currency exchange that moved to the beginning of 1HckjU was transferred to a total of 1 million USDT. PeckShield is assisting the relevant exchanges to block the levy and continuously monitor and track the remaining levies. At present, there are still ETH, BTC and other assets that have not been monitored for changes, and there is a possibility of further money laundering to the exchange."

"The SOXEX exchange ran away, and hundreds of millions of dollars were collected , involving BTC , ETH , HT , OKB and other mainstream currencies. Part of the TokenStore running funds has been transferred to the exchange for money laundering."

The country for this case study is not yet known.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Soxex Collapse

Date	Event	Description
July 4th, 2019	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $1,000,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

General Prevention Policies

There is no evidence that any funds were stored securely in a multi-sig wallet or backed. The ownership of the platform was completely anonymous.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.