A concerning Reddit thread has been gaining traction online that is fueling fears for investors using cryptocurrency exchange WEX.nz. According to the thread, a WEX user has claimed that WEX has scammed him out of $11,000 worth of Litecoin (LTC).
“Today, I stupidly decided to try trading on WEX.nz again, a mistake which ended up costing me $11,000 worth of cryptocurrencies and which lead to the closure of my account within less then an hour,” writes the Reddit poster, warning that no one is talking about a WEX exit scam he suspects to be currently underway.
What is Going on at WEX?
WEX is a small cryptocurrency exchange that launched last year, immediately after an exchange called BTC-E was closed when U.S. and Greek officials found evidence of money laundering taking place on the exchange. Following the shutdown, BTC-E was charged with a $110 million fine by U.S. regulators. Reports later surfaced that a Russian national named Alexander Vinnik had been arrested and charged for laundering billions of dollars using the BTC-E exchange.
After its launch, WEX immediately began marketing itself to former BTC-E users. The exchange’s website design and trading options bear striking similarities to its BTC-E predecessor.
Fast-forward to July of this year when serious concerns surrounding WEX began to surface.
Public suspicions surrounding WEX began on July 13th when Coindesk published an article titled ‘Something Strange is Going On at a Crypto Exchange Called WEX‘. The article reveals that in mid-July there were already a number of complaints directed at WEX beginning to surface from users who reported that their accounts’ withdrawal functions had been disabled.
These reports were followed by news that in mid-July, while Bitcoin’s price was at $6,000, WEX was reporting that Bitcoin’s price had taken off to almost $9,000. The price discrepancy continued for several days.
Finally, on July 19th, WEX tweeted that it would temporarily shutdown its site for maintenance. The exchange claimed that as part of the maintenance, users would be temporarily unable to withdraw funds from their accounts. On July 19th at 1:41 AM WEX tweeted that maintenance on the site had finished, however, WEX users are still unable to withdraw funds.
Maintenance has finished successfully.
— WEX Official (@WEXnz) July 19, 2018
Has WEX Begun an Exit Scam?
WEX has not sent out any tweets since July 19th and appears to have gone completely dark. Many users have since tweeted at WEX expressing their frustration and have yet to hear any response.
The author of the trending Reddit thread says after he contacted WEX support insisting on a withdrawal, that he had his account suspended.
“I found people complaining about how withdrawals have been disabled for weeks and how WEX.nz is in trouble,” writes the Redditor. “Panic attack ensued; I just deposited $11,000 worth of cryptocurrencies to an exchange that is in legal and financial trouble…I asked them to immediately refund the LTC I had just deposited. WEX.nz refused; according to them, all transactions are irreversible. One of the customer service agents even told me that ‘the funds are not available’ – a Freudian slip?”
The last thing cryptocurrency needs is another scandal on one of its exchanges. Crypto users at this time are encouraged to steer clear of the WEX exchange and to spread the word to protect themselves and others from what appears to be a potentially dangerous situation.
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