LATOKEN EXCHANGE 'UNCERTAINTY', ANOTHER EXIT SCAM?

Meeting O. Progress || JULY 10, 2019
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2019 has been a good year to cryptocurrency market and enthusiast. There has been massive support by investors all over the world. With new entries into the system, including social media giant ‘Facebook’, who introduces its cryptocurrency project ‘Libra’, is a huge plus to the crypto world.

However, there are security issues surrounding the existence of virtual currencies, especially the hacks and exit scams in the crypto-space. In May this year, Binance Exchange was hacked with over $40 million worth of BTC stolen. Also in May, Cryptopia Exchange went into liquidation as a result of hack which caused them about $16million worth of coins, etc.

This article is focused on the recent issues with Latoken Exchange, which is yet to be determined.

LATOKEN IN BRIEF

Latoken is a cryptocurrency exchange based in Cayman Islands; it is ranked among the top 20 exchanges by volume on CoinMarketCap. With over $1.3 billion trade volume as at press time, it has over 300.000 registered traders according to one release by the exchange. During their Initial Coin Offering ‘ICO’, in August and October 2017, the exchange raised $20 million according to ICOBench data.


THE SUSPICIOUS EXIT SCAM AND HACK CASE

Looking at some hack cases and exit scams in recent time, there is no difference between what we are seeing with Latoken, just like the case of Bitsane.

On July 6, some users suddenly started experiencing failure in login, before the exchange gave official announcement via their telegram channel which reads; "LATOKEN temporary closes withdrawals for Ethereum (ETH), Bitcoin (BTC), Stellar (XLM), Tron (TRX), Litecoin (LTC). Please wait for further announcements".

10 minutes later, the exchange made another announcement with the tag “Temporarily down for Maintenance”. With no specific time frame telling when the maintenance will be over.

After 10 hours, the exchange pleaded via the same source, requesting additional 5 hours for all functionalities to be restored; “Dear community, we are currently upgrading our platform to a new system. Platform is unavailable for deposits, withdrawal and trading. The update will take approximately 5 hours. After the upgrade all functionalities will be restored in full. Please excuse the inconvenience and thank you for your understanding.

Best regards,

LATOKEN Team”.

Announcements continued with changes in deadlines. Finally, the exchange resumed its activities, with users being forced to change their password and update 2FA. However, withdrawals weren’t available, with announcement requesting users to wait till July 8, which has also been prolonged till July 10, 2019.

“Dear users, we are undertaking additional security measures before opening the withdrawals. The planned date of withdrawal opening is July 10. Please wait for further announcements. Thank you for your patience and continuous support”.

Today, the exchange announced on its website that “Deposit addresses have been changed” – “Please do not send funds to your previous addresses. If you sent tokens/coins to your old deposit addresses please contact LATOKEN Support”.

Some users have already started allegation of exit scam and hack on their Telegram group chat, while some are patiently waiting with full confidence on the exchange.

Despite the situation, the exchange is still hosting new Initial Exchange Offering ‘IEO’ and listing new tokens.


BITSANE COMPARISON

In the case of Bitsane exit scam, over 246,000 people reportedly loss their fund to the exchange. It was reported that login and withdrawal started failing In May with emails from Bitsane support team that withdrawals were “temporarily disabled due to technical reasons.”, on  June 17 the exchange finally shut down, with its Twitter and Facebook accounts deleted, mails to Bitsane official email accounts  were reportedly returned as ‘undelivered’.

SO WHAT IS IT WITH LATOKEN EXCHANGE?
Although there is no transaction on their token wallet since the upgrade as at press time, except two out transaction within 24 hours, but I cannot be certain to say it is exit scam or hack, because I don't work with or represent the exchange in anyway, I believe it is the core developers that can give the correct answer if they choose to be truthful.

Cryptoinformers.info has contacted Latoken to know the actual situation about this issues and the fate of their users. We will update here as soon as we have any update from the exchange.



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