One of the greatest challenges created by decentralization is the absence of a clear regulatory framework that cuts across the decentralized economy. This is the reason why scam exchanges such as P2PB2B are operating undetected for a long time.
This issue has already cost investors hundreds of millions of dollars in losses to scammers. The fact that there is no defined way of detecting fraud exchanges when they set out makes it even more disturbing because most times, someone gets scammed and reports before we expose such fraudulent exchanges.
This is a reason why no investor should use an obscure or unknown random exchange for investments because it is one of the easiest ways to lose their coins.
If you’re already using this exchange, I suggest that you quickly make withdrawals of your assets. If you are still contemplating using them for investment, you’re lucky that you came across this review before you sent your digital assets to this exchange.
What is P2PB2B?
As weird as the name is, this is a cryptocurrency exchange that claims to belong to the next generation of exchanges. This means that it asserts that its services are top notch and an improvement on what is obtainable in many other exchanges that you may have used.
It claims to have the capacity to transact 10,000 trades per second. It also boasts a user interface that is easily accessible with its main features at the click of a button. It further stated that it has 24/7 support that users can easily contact and get solution to their problems and enhanced security.
According to the website, most of the assets it holds are stored offline in cold wallets,
“More than 95% of all currency are stored on cold wallets. WAF (Web Application Firewall) – a protective screen of a Web application that detects and blocks hacker attacks.”
Stealing from Investors
Nevertheless, having all these features in an exchange pales to insignificance if the motive of setting it up is to defraud the investors. Here is the report filed by one of the users on the activities of the exchange:
“Today I decide to give a try to this service. After the registration I tried to deposit some money and found that there’s minimum amount requirement.
Ok, the minimum is 50 Sem so I transferred exactly 50 Sem to the address provided by b2bp2p.
Now see what scammers do. They get exactly 50 sem, to the address provided than transfer the funds to their so-called inner wallet and voila your 50sem become 49,995 which is below their minimum.
And what the fraudsters say is:
‘All transactions which were less than the minimum deposit amount will be lost.’
In other words they deduct their own fee, take it, than steal the remaining balance.
“Nice” business! BEWARE AT ALL COST.”
That is a timely warning. If you’re crypto trader, always use RELIABLE exchanges.
Who is Behind this Exchange?
The owner of the exchange is not listed on the site, even though independent investigation shows that his name is Valerii Solodovnyk, operating out of Russia. Information available on the site suggests that it was registered in Estonia although this could not be verified.
The headquarters of the company is located at 120 Baker Street, London, England, W1U 6TU. This is a business district in London, but a close scrutiny of the address shows that it is a virtual office that is rented by many other businesses that do not have real offices but want to create the perception that they do operate in the city.
Fraudulent Inflation of Trade Volume
Information available on Coinmarketcap shows that the site claims it has daily trade volumes in excess of $167 million. This is higher than what many other exchanges that have higher traffic than P2PB2B post as their volume.
This is a clear indication that this exchange has been inflating its trade volume to lure high volume trading investors. Although it has recently brought the volume down to $95 million after community members pointed out the bogus claim, it is evident that the people behind this exchange are fraudulent.
Inability To Fill Big Orders?
We also discovered that it has either found it difficult to fill orders when such big investors made deposits to trade on the exchange. Here is another complaint:
“I recently purchased a large amount of Hempcoin from P2PB2B and after trying to withdraw from my fully verified account and after successfully sending a 600 Hempcoin test transaction, I tried to withdraw my remaining balance.
The number of coins I tried to withdraw was 2.6 million (1% of the entire circulating supply). This withdraw was delayed and showed a status of needing withdrawal from the cold wallet. This was on the 28th of June.
After waiting patiently for 3 days I contacted them through tickets, live help, and Telegram. They kept sending me the same reply on all channels “please wait”. I waited another 24 hours and contacted them again, they reacted by blocking me on Telegram and disabling my ability to contact them through live help.”
According to the user, Dopey who filed the report at BTT, he contacted the developers of the coin but they said they were experiencing similar problems with the exchange. He continued:
“P2PB2B then took the Hempcoin wallet offline and disabled deposits and withdrawals.
After waiting nearly two weeks I log in today to check my balance and 600k coins are missing from my balance and I receive an email saying “Hello. Due to the discovery of the sale of unauthorized coins, one of your purchase transactions in the pair THC_BTC was rolled back.”
This means that an exchange that claims that it has enough funds to cover huge transactions could not fill the order of a customer in 2 weeks.
What is obvious is that they have been selectively stealing funds of their clients. Perhaps many of these frauds have gone unnoticed.
A Whois search shows that the exchange has been around more than a year. The domain was registered on May 25, 2018. This means that it may have stolen hundreds of thousands of dollars from its users.
This is why every investor must be careful with the sites they make investments with. Cryptocurrency traders should always use known exchanges.
There are many reputable investment sites out there. The best options are the regulated exchanges since they must observe certain operational protocols to keep investors funds safe. This is our top recommendation.
If you have used P2PB2B before, please share your experience using the comment box below.