Opportunities abound in the cryptocurrency space for good players. We are not ignorant of the fact that bad players are aware of the prospects of this industry and would not hesitate to exploit the regulation lapses in the industry. This is the essence of this analysis of Tradesatoshi so that every investor would realize what they may be up against when they invest with this exchange.
TradeSatoshi in A Nutshell
The company is an exchange that provides a platform in which users can buy, sell or trade cryptocurrencies. It claims that its business in conducted transparently bearing the security of assets in mind.
Tradesatoshi claims to be reliable with its site running on some of the fastest servers in the industry and securing investors’ funds using cold storage and two-factor authentication to ensure that the highest security measures are taken on the platform.
This may not be exceptional measures since this is standard practice among reputable exchanges. We have received complaints that Tradesatoshi, contrary to its claims as seen on its website which states that:
“We take pride in our quick responses and resolutions. Our team is available every day of the year. We are always ready to answer questions or resolve any issues.”
How Long Has Tradesatoshi Been in Business?
The first inkling that an investor should have that there is something sinister about using this exchange is that there is no indication in its website’s footer when the company started operations. This should be standard practice with every business site.
We did a background check and saw that the site was registered on November 14, 2015. This means that it has been online enough for customers to have formed opinion about it.
What we have seen according to reports is that there are several scam allegations against Tradesatoshi. We would narrate some of these testimonies in this post. We’ll also state some of the reasons why you may reconsider using the platform if you already do.
But before we continue, for a reliable exchange that you can trust, check this regulated platform that will hold you by hand and show you how to profit on your assets even if you have zero investment experience.
Tradesatoshi Blocks Users for No Reason
There are several approaches employed by scammers, some are obvious while some hide behind company that seem legitimate to perpetrate fraud.
For scam exchanges, what they would do is find frivolous reasons to lock out users who already have funds in their accounts. By so doing, they steal the funds of those users who no longer have access to them.
Here’s the report of a user, Infinitecash,
“TradeSatoshi has frozen my account with a large amount of money, and their KYC aka Keep Your Crypto takes FOREVER. There is NO guarantee of getting your funds back. NEVER use this exchange if you like money. I am fuming, and this is totally unacceptable. They must have losses to make back, so they’re seizing users funds.”
He stated that the excuse given by Tradesatoshi support is that their verification team is working on the process.
“There is no information about their “verification team” whatsoever and they will answer NO questions about them. There is no way to contact them and the verification status emails are no-reply. If you have any questions about verification, tough s… . You won’t get any. Stay the h… away from this mess.”
A further probe shows that the Tradesatoshi support blacklists the email of investors that they block their accounts. This is a clear attempt to make sure that these investors have no means of recovering their stolen assets.
Listing Worthless Coins
Reputable Exchanges mostly list coins that have good prospect and built to last. This is not so with Tradesatoshi. The exchange is more interested in bloating its volume to give the impression that it has high liquidity.
This is a perfect strategy employed to lure high net worth accounts that could be locked out at their whims.
Another user, Mpe reported that
“THIS IS SCAM EXCHANGE. They are holding my coins that were worth $9000 as at 4 days ago. PLEASE AVOID DEPOSITS IF YOU DONT WANT TO LOOSE YOUR MONEY.”
Delisting Coins To Lock Out More Users
Another strategy that has been employed by Tradesatoshi to steal more assets is de-listing of digital assets that it claims have low trading volume. Even though exchanges actually de-list assets based on their objectives, Tradesatoshi’s approach is not surprising.
According to the ColossusXT team, Tradesatoshi announced on March 7, 2019 that it would de-list their coin without sufficient reason. It appears that the company later shifted the de-listing date to April 15, 2019.
Ordinarily, they should have permitted the holders of the asset to move them to other exchanges. But accounts of most of the holders were locked pending verification through KYC.
As if that was not enough problem created for the investors, on March 24, a wallet associated with Tradesatoshi started dumping their Colx token on the exchange in a clear market manipulation.
According to the ColossusXT team, the wallet dumped the Colx token until May 11, 2019 seeing to it that Tradesatoshi was the beneficiary of the de-listing.
In recounting their experience, the ColossusXT team stated that their users’ funds were trapped in the exchange under the pretext of a verification exercise that never ended while concurrently increasing the withdrawal fees and dumping the Colx token.
According to a Medium post by the ColossusXT team,
“Although it is suggested by TradeSatoshi that the listing period is extended to the 15th of April, multiple user accounts reported the fees to withdraw have increased, TradeSatoshi started requesting KYC meanwhile and never replied KYC submissions by users to delay this process.”
Another user reiterated the facts already reported about Tradesatoshi,
“After forced KYC, they locked all accounts to steal as many delisting coins as possible and then when asked they say we changed our policy see above…
READ THAT TWEET CLOSELY
Tradesatoshi can at anytime lock your account and take your funds even if you submit all necessary KYC documents. It says it in their policy. They allow free sign up and then later update terms and conditions so they can decide on their terms when they can lock your account and take funds.
They are scammers. Oh, if you complained, you are locked out of discord or twitter so you may need to use a incognito mode to view the tweet if you asked tradesatoshi a question on twitter…They BAN you ASAP.
Notice all the “tweet is unavailable” comments under their tweets…it’s because all those getting scammed and complaining are just banned.”
Operating Without License
A further research shows that Tradesatoshi Ltd, the company behind the exchange had been dissolved on July 24, 2018 according to Company House listing.
We have flagged Tradesatoshi an ongoing scam. Project teams must take note of this to avoid putting their community in a difficult situation by listing on this exchange. Investors should know that their funds are not safe with this exchange.
This is why we recommend this exchange for all your investment needs. Please share this post to spread the news about Tradesatoshi scam.
If you’ve had experience with this exchange, please share in the comment section below.