Satowallet, Wallet Company Pulls $1 Million Exit Scam

What would you do if you found out that the wallet you used in storing your coins suddenly wouldn’t deliver your assets? This is what has happened with Satowallet, a Nigerian wallet company that has reported it has been having issues with withdrawals since April 2019.

Users have reported delayed withdrawal to which the company stated that they have been had technical issues. However, there have been series of excuses given on why the users’ funds have been in limbo including OVH data server error.

At stake is $1 million in cryptocurrencies according to reports by Financial Times this week. After the initial complaints by users of the wallet, the company had attributed delays to plans to launch a new cryptocurrency exchange SatowalletEx. The management of the wallet had claimed that the delay was temporary.

It wasn’t long before Satowallet released a statement that they had lost the funds on the wallet blaming scammers that accessed the funds even though they did not provide proof that the wallet was hacked. The company claimed that the security breach occurred during a maintenance period.

Last August, the fear of the beleaguered users was confirmed when SatoWallet went offline. This was after subjecting the users to KYC in June. The August ‘break’ ended with the company restoring their website but the funds on the wallet had gone.

The Financial Times report on September 25 stated:

 “After installation, however, coins were no longer there from the backups and private keys. OVH data couldn’t provide any specific explanation, only saying their server was gone for abuse which they cannot explain.”

The report stated that even though Satowallet claims to be based in Dubai, its parent company, Blockchain Tech Hub operates out of Nigeria. The wallet was known to have supported more than 60 digital currencies. Founded in 2017 and focused on hot storage, the story reads more like a fairy tale but is most likely another exit scam.

Experts have always maintained that the hazards involved in cryptocurrency use and storage demands that wallets and exchanges be carefully selected. Users have been advised to avoid random wallets and also use reliable investment sites.




Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.

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