Nigerian cryptocurrency wallet allegedly manages $1m exit scam

A Nigerian cryptocurrency wallet, Satowallet, has been suspected of pulling off over one million dollars ($1 million) in exit scam that has kept user deposits in a state of suspension.

Today, cryptocurrency scammers use both old-fashioned and modern-day technique to trick people into falling prey to Ponzi schemes, cybercrimes or exit scams. Needless to say, investors must always remain leery of potential crimes looming over the cryptocurrency industry. Unfortunately, many cunning yet engaging plots often go unnoticed, and Satowallet’s alleged exit scam is one such example.

Founded in 2017, Satowallet claimed to be a Dubai-based cryptocurrency wallet while its parent company, Blockchain Tech Hub, operated out of Nigeria’s capital city, Abuja. It was a popular multi-offerings wallet, until this year in April, when the users started raising suspicions of its legitimacy.

Cryptocurrency wallet’s users raise suspicions

Reportedly, some users brought to the attention of the social media channels when withdrawals started faltering. Although the firm’s CEO maintains it was a result of a technical snag, the company took advantage of every possible opportunity to delay the withdrawals, citing upgrade and maintenance issues.

Following its latest make-believe of enforcing Know Your Customer (KYC) measures in June, the company announced manual withdrawals and eventually went offline in Aug. This was when things started going downhill for the firm.

According to the firm, it restored its online operations only to find out that user funds went missing. Apparently, the coins somehow disappeared from private keys and backups.

Although Satowallet’s CEO continues to blame the debacle on its datacenter for stealing the cryptocurrency holdings from wallet servers, it remains to be proved whether the firm has managed to pull off one of the biggest exit scams in the Nigerian cryptocurrency industry.