Satowallet Crypto Wallet Out of Nigeria Involved In An Alleged Exit Scam Worth Over $1 Million
A crypto wallet company based in Nigeria, Satowallet is being accused of engaging in an exit scam. According to Finance Magnate, the company is being accused of disappearing with more than $1 million of customers’ deposits. However, the company’s CEO has refuted the accusation stating that the problem emanated with a technical issue which resulted to loss of customer funds.
Since its inception in 2017, the company has faced a lot of controversies starting with its claims that its located in Dubai yet its parent company, Blockchain Tech Hub has always insisted that its situated in Abuja, Nigeria. The firm provides various forms of wallet services and also operates a crypto exchange that currently holds more than 60 crypto assets that comprise of the major ones like Bitcoin, Ethereum, Bitcoin Cash as well as Litecoin.
Customers have been questioning the operations of Satowallet dating back in April as customers started to ask for more information about the wallet that seems to market itself among the crypto enthusiasts in Africa.
As per some of the customers,Satowallet withdrawals began faltering from April this year with the company claiming that technical hitches were to blame for the temporal disabling. This was days after the firm stated that it was working on launching of a new crypto exchange that would be referred to as SatowalletEX.
After customers started their complaints, the company came out to explain that hackers had taken advantage of an ongoing system upgrade and stole the users’ funds. The firm also said that it had rectified the problem but it turned out to be another excuse meant to delay the withdrawal of funds from the wallet. In addition to the delay tactics, the company also came up with new KYC requirements in June this year that took a couple of days before the clients could be verified.
After endless delay tactics, the company’s clients were astonished last month after the platform suddenly became inaccessible with the CEO stating that the company’s servers were down. The platform has accused its data provider OVH.com for stealing the funds through fraud.