Altcoin News: Nigerian Crypto Wallet Is Suspected of Exit Scam

September 26, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The developers of the cryptocurrency wallet — Satowallet, each time finding new reasons not to pay users their funds, writes Finance Magnates.

Satowallet was founded in May 2017 and, according to official information, is based in Dubai and has a representative office in Nigeria. The main target audience of the service are residents of Africa. Satowallet offers support for more than 60 cryptocurrencies, including Bitcoin, Bitcoin Cash, Litecoin and Ethereum.

Users began to have difficulty withdrawing funds in April. The company referred to temporary technical problems and at the same time announced the launch of the SatowalletEX exchange. Responding to user complaints, the developers said that several attackers took advantage of the wallet update to steal their funds. Later, they reported the elimination of the vulnerability but introduced manual transaction processing and forced verification of users, which is why the withdrawal of funds was inevitably delayed for several days.

In August, Satowallet users found that they could not access the platform. The CEO of the company explained that all eight servers responsible for the operation of the wallets, application and website were out of order. After some time, the developers reported that they were able to restore the service due to backups received from the OVH data center. However, there were no user assets in wallets.

OVH claims that server maintenance was suspended due to an unnamed violation. The creators of Satowallet, for their part, continue to blame OVH for fraud and withhold user funds.

Author: Marko Vidrih