We all enjoy the convenience of doing business on the internet even though there are risks. Yobit is not just another exchange by the periphery of the cryptosphere so you could hardly fault anyone using it to trade their cryptocurrencies.
It is an exchange that has been in operation since 2015. The length of time it has been in the news and the fact that it supports many digital currencies tends to give investors the impression that Yobit is a reputable company. But is this really what is obtainable at the exchange?
Who is Behind this Exchange?
Some of the largest exchanges are run by companies that are properly registered and regulated by the relevant authorities where they are located. But we cannot say the same for Yobit which seems to operate an unregulated exchange on their own terms.
A look at the site shows that apart from English, there are Russian and Chinese versions. This has led to speculations that the company behind the exchange is based in Russia especially after the Russian government announced it would investigate the exchange.
A Rascally Exchange
Allegations of fraud against YoBit are so common that it doesn’t surprise people who know about the exchange anymore. Yobit is obviously comfortable with its bad reputation that it announced sometime in 2018 that it would pump some coins listed on their platform.
Although crypto enthusiasts thought that the official Twitter account of the company was hacked, it has been proven that the exchange is involved in shady activities that border on the unethical.
This though is not the main concern of industry watchers. The fact that the exchange supports many coins makes it attractive to a large number of people. Its reputation as a somewhat unreliable platform means that many lose their funds there. Perhaps more than the records show.
If you are a crypto trader that trades substantial volumes, you should be especially wary of using Yobit as we shall see in this article.
Stealing Users’ Funds
At face value, a user would have no doubt that YoBit is a legitimate exchange considering the number of coins it supports.
Although this shouldn’t be a criteria for judging an exchange because there are some that would take money from ICO teams and list any tokens irrespective of whether it is worth listing or not.
To such exchanges, what matters is the listing fee they collect for such tokens and not their relevance to the coin market.
Yobit falls in the category of such exchanges that are not guided by definite visions and ideals.
The disturbing aspect of the exchange’s operation is that most of the complaints against the platform are from people who made substantial deposits.
These could not get back their investments in what seems to be a deliberate ploy by Yobit to steal from investors.
Cheating Its Own Customers
It would be easy to think that a company like Yobit may be having these issues because it handles volumes or traffic beyond its capacity but the reaction of its support desk makes it obvious that this is a calculated scheme to cheat users of the platform.
Before you use Yobit again please read the experience of some users of the platform.
POS Coins Lost To Yobit
A user of Youbit Alex Nwo wrote this:
“I am trying to withdraw thousands of a POS coin from Yobit.
Transaction “in process” since June 11, 2018 and coin were NOT sent and STILL in same address. “
Cryptoinfowatch followed up his case and realized that the coins valued thousands of dollars were held by Yobit despite the fact that they were POS coins that yielded returns for the exchange instead of the owner.
Banned For Complaints
Nwo made several attempts to get the company’s support to do something about his problem but only succeeded in getting banned by the support and removed from Yobit’s Telegram channel.
He was banned by Yobit on July 28, 2018 after the company put his wallet on maintenance. The ban was their reaction to his query of why the account was put on maintenance.
On July 10, Yobit moved the coins out of his account confirming that the company actually steals crypto deposits from users when the amount is tempting enough. Nwo lost more than $2000 to the scam exchange.
Another user made the mistake of sending 10 BTC to another address that Yobit had control of and could have easily refunded. He even wanted to forfeit 2BTC for their effort but never got his funds again.
The December 13 deposit of 10 BTC was never acknowledged by Yobit. Those that are conversant with the Yobit support said about the service:
A Thieving Exchange
The exchange has left no one in doubt that it intentionally steals or delays funds that are big enough either for the purpose of benefiting from trading them or just because they are insolvent. It is not possible for a platform that shady to make progress so they now blatantly steal people’s funds.
It is not likely that their shady behavior is accidental, it rather points to the fact that scammers were originally behind the exchange and that its purpose was just stealing from their investors that made substantial deposits just like any scam site.
Let’s look at the experience of another user I’d call Hansson:
There have been issues where people just bought cryptocurrencies from the exchange and were charged but the coins were not credited.
There are many people who are not aware of the number of scam accusations against Yobit. If you are an investor willing to deposit thousands of dollars for trade, keep away from Yobit.
A timely warning from a BitcoinTalk user regarding Yobit is,
Investments are risky so due diligence is important, one of the few companies I invest with for trading is what I recommend. If you have had experience with Yobit.net please the comment box is below.