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Crypto exchange PureBit steals $2.7 million USD in exit scam

The Korean Exchange, Pure Bit, has pulled an exit scam, stealing the equivalent of around $2.7 million USD worth of cryptocurrency.

A tweet posted by Rok, a Korean cryptocurrency and blockchain news outlet, reveals that the freshly launched Korean exchange, PureBit, has pulled an exit scam. They have stolen around 13 thousand in Ethereum (ETH).

The founder of the exchange has reportedly left a message on their Kakao account which reads “I’m sorry.” This message was written in high formality. The exchange’s website currently cannot be reached and likely never will be again.

This case is the latest in a number of cryptocurrency exit scams. An exit scam is when an exchange or crypto related company use Initial Coin Offerings (ICO’s) and other means to get users to place their cryptocurrencies within their systems, then abscond with it. This is a regular occurrence.

In February of this year, LoopX, an emerging start-up company, disappeared from sight after collecting a total of roughly $4.5 million USD worth of crypto tokens. Thefts like this occur on a smaller scale too. Another Ethereum start-up, Prodeum, promised to act as a decentralized ledger, tracking vegetables in a supply chain. It vanished after only making the equivalent of $11 USD. It also left behind a message:

Cryptocurrency exchanges are not heavily regulated at the best of times. It is up to us, the users, to avoid scams. Make sure to always research the companies you are trading and investing with, lest you be cast into crypto ruin.