More than 246,000 users of Bitsane, apparently, fell victims of large exit-scam. The exchange stopped working and stopped responding to user requests.

Bitsane, registered in Dublin, allegedly was a fraudulent project. In May, users of the exchange started having problems with withdrawals of their assets.

One Reddit user told his experience with the exchange in the middle of June, warning about various problems with withdrawals and surprisingly low prices for coins.

“So i've been watching coins prices and they seemed very cheap on bitsane yesterday with order books full of sellers selling for shit prices like literally you could buy a coin for 50% off just doing a market order, i thought i would give them a try and transfered a small amount 30$ to get xrp for 0.20$ then sell it for double somewhere else."

According to him, he quickly passed registration, transferred deposit and make orders in a few clicks, but then he faced problems with withdrawals. No one answered his tickets, and he saw that exchange's official account in Twitter was filled with similar complaints. Customers were desperately trying to withdraw crypto assets from the exchange accounts for more than a month.

By 17 June, both the Bitsane website and its social network accounts were deleted, and emails sent to Bitsane addresses were returned as undeliverable.

As of 30 May 2019, the number of Bitsane users totaled 246,000 accounts, and the daily trading volume exceeded $7 million.

Forbes, which first wrote about possible fraud, tried to contact Bitsane CEO Aidas Rupsys and its chief technology officer Dmitry Prudnikov, but they did not respond to the requests of journalists. At the same time, Prudnikov’s profile on LinkedIn was deleted.

According to messages of affected users in Telegram and Facebook groups, most of them lost within $5000 in cryptocurrencies. However, Forbes magazine was able to communicate with a US resident who prefers to remain anonymous and who lost $150,000 in XRP and bitcoins.

Bitsane was launched in November 2016. There is another company in the UK under the same name, Bitsane Ltd, registered in August 2017 by entrepreneur Maxim Zmitrovich. He wanted to own the intellectual property rights to part of Bitsane’s code and use it for a trading platform his company, Azbit, was building. Zmitrovich says Bitsane’s developers insisted that their exchange’s name be on the new legal entity he was forming. But Azbit never ended up using any of the code since the partnership did not materialize

Several Bitsane users from the United States filed complaints with the FBI.