Users Concerned About Possible WEX Exit Scam
The community of cryptocurrency enthusiasts has become increasingly concerned that the Singapore-based WEX exchange may be running an exit scam. Following suspicious trading activity and locked wallets, the company is now preventing all users from withdrawing funds.
On July the 11th, BTC/USD was trading on WEX at over $9,000. This was particularly suspicious when the world market average was less than $6,400dollars. After rising to $9,000, Bitcoin (BTC) constantly traded around $8,000, more than $1,600 dollars than the world price. The USDT/USD also revealed strange anomalies with the 1:1 stablecoin pegged to the price of the US dollar trading at 1.30 dollars on WEX.
In this case, there were opportunities to buy BTCs on a separate exchange and attempt to sell them for a profit on WEX was probably tempting to many, but there is also a latent concern that the trading price might have been deliberately manipulated to attract users to the exchange and then run an exit scam.
After they kept their prices inflated for a while, they urged users to avoid trading. So WEX has now blocked wallet withdrawals, relying on the excuse of “necessary maintenance”. However, while withdrawals are blocked until July the 22nd, users can still deposit funds on the site, raising questions about the nature of the alleged maintenance.
An unofficial subreddit of the exchange cites multiple examples in recent months of users claiming that the exchange has taken their funds and ignored all support tickets. This is also repeatedly demanded by users of the Twitter exchange.
WEX is a renamed version of the BTC-e exchange; which was closed for being related to a billion dollar money laundering operation, an action carried out by the Russian Alexander Vinnik, who was also charged by the authorities of having a connection to the criminal operation.
Singapore's trade records indicate that WEX is officially owned by one Dmitry Vasiliev, but he recently claimed to have lost control of the exchange. And to all these, it hasn't exactly clarified who was in charge at the moment.
So far, WEX has not publicly responded to claims that an exit scam is being carried out. The staff did not assure users that their funds are secure. It is very important to be far away from unregulated platforms and networks without good comments or suspicious activity.