Coin Edition -
- In August, the BitGlobal exchange disappeared with customer funds, leaving no trace.
- The incident showcases the inherent vulnerabilities and risks of the crypto industry.
- Traders and investors are suggested to use reliable exchanges for trading and personal wallets for storing assets.
In the ever-evolving and highly vulnerable crypto space, the community is often advised to use decentralized exchanges (DEX) and centralized exchanges (CEX), cautioning against the probable security risks. While the industry witnesses increasing scams and exploitations, analysts and sleuths suggest users store their holdings in personal wallets and trade using reliable exchanges.
Reflecting on a recent appalling incident, Satoshi CORE, a prominent figure on X, shared insights on the abrupt disappearance of BitGlobal, a cryptocurrency exchange created by the Korean Bithumb. Established in 2019 as Bithumb Global, the platform vanished as if to nowhere with user funds, marking no trace.
Why you should prioritize trading on DEXs than CEXsThe past week we witnessed the disappearance of #BitGlobal exchange, along with traders' funds. Do note that BitGlobal is a popular CEX with large users; it originated as #BithumbGlobal by @BithumbOfficial KOREA in 2019, aimed… pic.twitter.com/zIdTizeyHe— Satoshi CORE (@BTCs_) August 21, 2023
Considering the fact that BitGlobal hasn’t been one of the smaller crypto companies, but a reputed firm that aimed at global trade, the risk of choosing crypto trading platforms is further exposed. The platform escaped with all the funds of its customers without prior notice, leaving the users unable to retrieve their assets.
Benn, the co-founder of the utility coin FREEdom Coin, took to Twitter in August 2023, following BitGlobal’s deception to draw the crypto community’s awareness towards the prevailing dangers in the market. Requesting for the community’s reaction, Benn cited, “Bitglobal (created by BithumbOfficial in 2019 as BithumbGlobal to serve non-Korean customers) performed an exits scam with the funds of the traders”.
Bitglobal (created by @BithumbOfficial in 2019 as BithumbGlobal to serve non-korean customers) performed an exits scam with the fundsof the traders. What is your reaction to this ?— Benn | co-founder #FREEdom_coin $FREE (@THE_FREE_COIN) August 20, 2023
In another tweet, Benn presented the platform’s “exits scam” as “another reminder” to remove customer funds from exchanges. While the sudden disappearance of the platform resulted in the loss of a wholesome amount from the customers, Benn reprimanded investors and traders to remove their holdings from exchanges, moving them to personal wallets. Benn cited,
The funds of the traders seem lost. So remove your funds from exchanges, store them in personal wallets, more exchanges are clearly in liquidity problems due to the ongoing bear market.
According to a 2022 report, nearly 50% of failed crypto exchanges have vanished with user funds, without leaving evidences. Of all the crypto trading platforms that have fallen since 2014, 42% have disappeared citing no reasons.
The post BitGlobal’s Abrupt Disappearance Underscores Crypto Market Risks appeared first on Coin Edition.