OvexTrade Withdrawal Fraud Platform
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Scammers were setting up multiple fraudulent platforms such as OvexTrade, then offering loans on the BitcoinTalk forum. Participants reported that the loan application process included recording videos of themselves for a KYC validation. Once a loan applicant was approved, they would be informed that their bitcoin was sent to them on the OvexTrade platform. They could then pay the cheap withdrawal fee of 0.015 BTC if they wanted an on-chain withdrawal. Of course, no bitcoin were actually ever given to them. Instead, the videos were used to set up trading accounts or perform fraud in their likeness, and the 0.015 BTC fee was never recoverable. While one user reported wanting to pursue legal actions, there is no indication that any funds were ever recovered.
This is a global/international case not involving a specific country.[1][2][3][4][5][6][7][8][9][10][11][12]
About OvexTrade
"Be a part of OVEXTRADE Exchange. The best way to receive, send and trade cryptocurrency." "OVEXTRADE is a trusted platform for trading Bitcoins. The exchange provides fast order execution, low spread, and access to high liquidity orderbook for top currency pairs on the market. Cross-platform trading is realised via website, mobile app, and several API solutions. Safety of assets and data are backed by high security standards and advanced legal compliance."
"Our system is protected! We have been working since 2017 and during this period our system has never been hacked by intruders! All passwords, account data and user's personal data is protected by ComodoProtect™ and provides the highest degree of security in this industry!"
"Our system is safe! We care about your safe and security of your assets, so we developed the GhLwork™ protection system, which provides holistic protection for your assets. We transmit all data with safe httpS:// protocol, and nobody can get access to your account, because of using Two-Factor-Authentification."
"We are always online. To make use of the site as comfortable as possible, as we can for our customers, we hired a support group - these are specially trained people who will answer any question! Our website support team works round-the-clock, 7 days a week to answer any your questions! To write to support just click on the widget at the bottom of the site!"
"Our system is stable! We've eliminated all the factors that could interfere with our system. We are working since 2017 and during this time we have repeatedly confirmed our competence in the market of cryptocurrencies!"
"Secured Deal It is perfect way to make a deal with minimal risk. You can buy and sell any goods with maximal safety, because your funds is protected by our rules."
"110 Bishopsgate, London EC2N 4AD, UK Company Number OC393265"
"I will give a loan in cryptocurrency. 0.1 to 2 BTC. Term up to 12 months. 18+. Write to telegram @ vianova."
"Their "about" page claims they've been around since 2014, but then contradicts it's self further down the page stating they were founded in 2016. According the the WHOIS data the domain was created on 10 OCT 2019."
"The Terms of Service page is plagiarized from" Exmo.
"According to user Mosperian ovextrade.com requires a deposit of 0.015 BTC to make a withdrawal of funds that are already in your account. He was directed there by loan scammer." "It is either the same guy behind all of them or someone is selling them the script/source of the website so other people can scam."
"This template is from of these websites where they give you "free coins" in a giveaway but... you obviously need to deposit to withdrawal the coins. I will find a post made on the Portuguese board where the domain is different (other website) but it is literally an exact clone of this site."
"Its a SCAM and i got burned very bad.I found a username and password in pastebin.com and entered them and i saw there over 5 BTC.And then i started chating with the support thinking it was a real support.I paid 0.02 BTC to start withdrawing,then 0.035 some insurance and at the end he/they wanted me to deposit 0.05 for Premium account.And i got confused but it was ro late.This is why you must double check sites where there is no security(just the telegram security code).Anyway i searched and found the number of the company,but it is one with expired day.Company Number was OC393265 which is for LA CLOTHING SOLUTIONS (MIDLANDS) LLP."
"He will send you the money on ovextrade.com and require you to deposit .015 btc in order to withdraw from the shady looking exchange to an external wallet. Sent me 1.5 btc when I really only wanted .1 and it's locked on this site. I doubt the BTC actually exist it's probably just a displayed number. He also makes you send a long video reading off a bunch of stuff. It's very shady. I wouldn't suggest anyone do it. I was just desperate because localbitcoins put me in a bad situation."
"You don't give any loan[. Y]ou will said you will send to tradeberry.org and this site is a hack so stop wasting people time[. Y]ou don't have any BTC."
"He definitely controls the fake exchange ovextrade.com that hell "send" the funds to. I put apostrophes because the wallets displayed show no transactons on the blockchain so the btc really is just a displayed number on the site and no transaction actually takes place."
"I've compiled a lot of evidence including my conversations with him and I'll be persuing charges of fraud and possibly securities fraud against him and anyone who may be involved in the scammy site."
"Probably you won't find it. [T]here is a [supposed] statistic 10% of the people using the internet have been scammed at least once. Only 2% of the scams are found and solved; unfortunately."
This is a global/international case not involving a specific country.
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.
| Date | Event | Description |
|---|---|---|
| October 22nd, 2019 2:03:06 AM MDT | 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 is unknown.
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
From the standpoint of an end user, care must be taken for any platform you are looking to sign up with. Always check with multiple trusted sources to ensure that a platform is trustworthy, and never leave funds on the exchange. Be especially suspicious if you are offered any sort of money in exchange for making an upfront payment, regardless of what the money is for.
The primary defense for regulators would be ensuring that all trading platforms are registered and making that process as easy as possible, so that trading platforms will obtain registration. In order to ensure safe trading platforms, operators need to be properly trained in security, a proper multi-signature wallet needs to be used, and funds must be verified to be fully backed on a periodic basis.
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.
References
- ↑ @sniko_ Twitter (Jul 26, 2022)
- ↑ Ovextrade (Dec 20, 2022)
- ↑ Scam exchange: ovextrade.com (Dec 20, 2022)
- ↑ I will issue a loan in the BTC (Dec 20, 2022)
- ↑ I issue a loan at BTC. (Dec 20, 2022)
- ↑ View the profile of Reechealo03 (Dec 20, 2022)
- ↑ I will issue a loan in the BTC (Dec 20, 2022)
- ↑ Cryptotradego (Dec 20, 2022)
- ↑ Www.coinbeaxy (Dec 20, 2022)
- ↑ Coinbeaxy (Dec 20, 2022)
- ↑ Known Alts of any-one - A User Generated List Mk III (2022 Q2) (Dec 20, 2022)
- ↑ I issue a loan at BTC. (Dec 20, 2022)