In what has become a recurrent theme in the cryptocurrency industry, another cryptocurrency exchange has suffered a cyber-intrusion.
MapleChange, a Canada-based crypto exchange, said it suffered a security breach late on Sunday that led to the loss of user funds.
Users’ Two Factor Authentication (2FA) didn’t help; neither did their cryptic passwords, as the cyber-criminals brought down the exchange itself.
While MapleChange is not exactly a giant in the industry, at least 2000 investors have lost a large portion of their savings, if not all of it.
Many customers were certainly amazed when they suddenly couldn’t access their accounts at the MapleChange crypto exchange, which hosts Bitcoin and other crypto coins.
The exchange is unable to refund users
In addition to temporarily suspending all trading activities, the company also reported that it is unable to pay users back. Also, it deactivated its official website and all its social media profiles.
“Due to a bug, some people have managed to withdraw all the funds from our exchange. We are in the process of a thorough investigation into this. We are extremely sorry that it has to come to end like this. Until the investigation is over, we cannot refund anything,” the company announced on Twitter.
The MapleChange is not supported by CDIC, and with varying levels of decentralization across the cryptocurrency sphere, there is little hope of those funds ever finding their way back to their rightful owners.
Online detectives claim exit scam
The breakout of news of the hack followed by a shutdown of all social media profiles led to several social media users accusing them of planning an exit scam.
A Canada-based bitcoin enthusiast Francis Pouliot said “I’m going to go ahead and call it early without proof: exit scam! It has all the tell-tale signs of a pathetic attempt to stage a “hack” and run away with user funds. It’s so easy to hide malice behind incompetence.”
In spite of their decentralized nature, digital currencies are still purchased and sold via centralized exchanges. Unfortunately, there are no regulatory bodies overseeing these cryptocurrency exchanges in many jurisdictions. Therefore, many unsuspecting investors have been left bankrupt when the exchanges they signed up for turn out to be scams.
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