Yesterday, October 28, a Canadian cryptocurrency exchange ”MapleChange” announced on Twitter that they have been hacked, and currently their website is down.
“Due to a bug, some people have managed to withdraw all the funds from our exchange. We are in the process of a thorough investigation for this. We are extremely sorry that it has to come to end like this. Until the investigation is over, we cannot refund anything,” reads the original tweet.
Later, they opened a Discord server where users could post their losses. The total amount of assets hacked still remain unconfirmed.
Closing social media
Later, they came out with an another, rather suspicious announcement saying that they are closing all their social media platforms: “Because we have no more funds to pay anyone back, the exchange has to close down unfortunately. This includes all of our social media.” This has raised a lot of uncertainty within the followers of the exchange. They accuse the exchange of forming an “exit scam”, but later they came out with yet another tweet clarifying that “We have not disappeared guys. We simply turned off our accounts temporarily to think this solution through. We cannot refund everyone all their funds, but we will be opening wallets to whatever we have left so people can (hopefully) withdraw their funds.”
The fact itself is that they have announced that they will not be able to refund any BTC or LTC funds, but they have been able to recover LMO (Lumeneo) and CCX (Conceal) token wallets which are being sent over to their coin developers. These two assets couldn’t be found on the CoinMarketCap website, but we were successful searching them on CoinGecko. Also, LMO and CCX were the top two assets with the most volume traded on the exchange, so those are good news.
The exchange itself had almost 2000 twitter followers and the day before the hack, it reported a $15k daily trading volume. Which is another factor which makes us lean towards the exit scam theory. The exchange saw a slight increase in volume during the day before the hack. It went from $5k to $17.5k in the matter of an hour, so it looks rather artificial because that was the highest traffic MapleChange had seen in the past 6 months.
The good the bad and the ugly.
The good news are that it looks like the main funds (LMO and CCX) with which the users of the exchange have been trading with, will be refunded and that the exchange’s communication with the customers appears to be back and running.
The bad news are that, yet again this is another low level exchange that just got hacked. Which comes as another reminder to us all not to trade within centralized low level exchanges, which offer assets that are not even available on CoinMarketCap. These kind of exchanges need to be avoided at any means, because the crash of such a service is inevitable.
But then again, these people who engage with such exchanges, are aware that they are depositing their funds to a insecure source, just to get the “promised” x10 on a trade.
We strongly advise you not to use low volume level centralized exchanges, since they can easily go out of business, lock you funds or disappear just by announcing that they have been hacked.
Photo by Canva.com