The new South Korean crypto exchange Pure Bit may have run away with 13,000 ETH from investors. The exit scam was reported some time ago by Korean Cryptocurrency & Blockchain News (BlockchainROK), a recognized news source in the South Korean market. This is just one of the many exit scams that affected the whole virtual currency industry in the last years.
New Cryptocurrency Exit Scam
The virtual currency market has experienced a new exit scam. BlockchainROK explained that the crypto exchange Pure Bit claimed 13,000 ETH from investors. As per the report, the channels opened through the official Kakao channel are empty. The site has also been pulled.
🇰🇷 – New Korean exchange Pure Bit just pulled an exit scam claiming 13,000ETH from its investors as we speak. Kakao channels are emptying and the site has been pulled.
This is why we can’t have nice things. Karma comes back hard when you screw this many people over. pic.twitter.com/GDkjiz1gAq
— Korean Cryptocurrency & Blockchain News (@BlockchainROK) November 9, 2018
According to BlockchainROK, the ICO moved the funds gathered (13,000 ETH) to personal virtual currency wallets. The ICO aimed at launching a cryptocurrency asset exchange. The situation happened just days before the ending of the official pre-sale.
Because of this situation, investors decided to comment on social media the situation that they experienced. Some of the comments were related to the fact that the Kakap channels were wiped of its members. Kakao is one of the largest and most popular messaging platforms in South Korea. Additionally, the website stopped functioning and offering information about the ICO.
The ICO was also planning to launch an Ethereum-based coin known as ‘PURE.’ This token would allow users to receive dividends from the profits made by the exchange. Moreover, users could also save up to 30% on their trading fees at the platform. Another promise they made was related to a token-burning schedule to destroy 90% of all the PURE tokens in three years.
Another thing to mention is that Pure Bit’s founder wrote a message on his Kakao account. It said ‘I’m sorry’ in Korean. Investors would have to work with local authorities in order to find a solution to this problem.
During the current and last year, South Korean authorities decided to take several measures to control the virtual currency market. One of these measures banned Initial Coin Offerings (ICOs) from operating in the country.
Regulatory agencies all around the world need to take action to stop these situations. However, some countries do not want to be the first movers and risk harming development in the crypto field.
Another exit scam that has affected the crypto market in recent times is related to Oyster Pearl. The founder of the platform created new PRL tokens and sold them immediately after on the cryptocurrency exchange KuCoin. The project moved on and forked to Opacity.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.