It has come to our attention that the ColossusXT coins held by Tradesatoshi Exchange have been traded into the market through CryptoBridge Exchange.
This wallet [https://chainz.cryptoid.info/colx/wallet.dws?5573.htm] has been confirmed to be the wallet belonging to Tradesatoshi.
TradeSatoshi exchange announced COLX to be delisted with several other coins on 7th of March, 2019 without providing proper reasoning or prior notice to the ColossusXT team with an initial deadline for 1st of April which is later supposedly extended to 15th of April, 2019. TradeSatoshi did not inform its users by email about delisting.
Starting from March, this wallet which had ~286 Million Colx was sold completely into CryptoBridge’s COLX markets within the last ~1.5 Months.
When we look at the activity in the bitshares network, user called “fisherman2019”,
- is registered on 20th of March: https://bitsharescan.com/transaction/9de3ee38ed92fe56afcb011f8cfa98556115ec4a
- started dumping Colx by 24th of March: https://bitsharescan.com/transaction/e1b24120ee5b9e40e535f54c2f0767e1d0de811e
- 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:
- All above sent balances end up in CryptoBridge wallet, can be seen here for traceability: https://chainz.cryptoid.info/colx/address.dws?DDpxjx9o83UTZtoGLXVgJ8ykApoqyYZEkq.htm
- All the dumping activity in CryptoBridge by this user can be traced here: https://bitsharescan.com/account/fisherman2019
During our investigation, we have also noticed TradeSatoshi Ltd (Company number 09878766) in the UK was dissolved in 24 July 2018:
Why Wasn’t This Stopped?
The ColossusXT team has gone to great effort to force Tradesatoshi to open up withdrawals and to extend this to a decent grace period so our users could get their coins out.
ColossusXT team reached out to their responsible person (infinite27#0700 — Discord ID: 351327820078776322) to understand the reason in the same date delisting was announced and been informed decision is based on new volume policy which was not existing for over 1.5 years.
Although it is suggested by TradeSatoshi that the listing period is extended to the 15th of April, multiple user accounts reported the fees to withdraw have increased, TradeSatoshi started requesting KYC meanwhile and never replied KYC submissions by users to delay this process. TradeSatoshi Colx wallet was also under maintenance during the most of this extension period.
ColossusXT team also asked questions in TradeSatoshi discord and on twitter, all resulting to banning of users, even when simple questions were asked or simple comments were made.
On our part, we have filed a report with law enforcement in the USA and if you also file, please include our police report number as they can combine reports. File Number: 19–001308
Please understand, members of the ColossusXT team had coins on Tradesatoshi. We are just as upset as any other ColossusXT user as we are a community and we are all suffering through this together.
What About CryptoBridge?
Unfortunately, there is nothing CryptoBridge could have done without a court order or could do now. They are an exchange, they allow deposits and they allow trading to occur. There’s no way to reverse the trades that have been made or to unravel the whole situation. Please do not attack or accuse any other exchange of wrongdoing here. If the evidence above proves true, Tradesatoshi is the only exchange that has done the wrong thing.
This incident has not only affected the ColossusXT community, but a number of other coins that were trading on the exchange.
We encourage other coins defrauded to come forward and we will gladly and openly share any information we have available to further the investigation.
To let everyone using this exchange know, please advise your communities to use #TradeSatoshi #Scam #ScamAlert tags on Twitter.
The ColossusXT Team’s Recommendations
Exchanges large and small have caused losses in the past to users. As with any cryptocurrency, the best way to ensure your coins are safe is to keep them in your own wallet. Use the encryption method within the ColossusXT wallet and store backups of your wallet. For additional security, please check out our article [https://medium.com/@colossusxt/lets-talk-crypto-security-af722582f3dd].
We also recommend to use decentralized exchanges like Blocknet Decentralized Exchange: Every trade is peer-to-peer, wallet-to-wallet, with no middleman. Through the power of Atomic Swaps, you never have to trust a third party: https://blocknet.co/colossusxt/
Future ColossusXT Developments
We fully understand this situation is not ideal. Our roadmap [https://colossusxt.io/roadmap/] and whitepaper [https://colossusxt.io/whitepaper/] were specifically designed to give you, the user, more control and more desire to keep the ColossusXT coins you own in your possession instead of leaving them on an exchange. We, as a team, truly feel that the above options will help usher in a new era of cryptocurrency, improve the use cases of ColossusXT, and greatly incentivize keeping coins in your wallet.