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Exit Scam? Dubai-Based Crypto Exchange ADAX Vanishes With Users’ Funds

MNabilAli

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Dubai-Based Crypto Exchange ADAX Vanishes With Users’ Funds

Dubai based cryptocurrency exchange ADAX.AE AKA “The Arab Digital Asset Exchange” has vanished and it looks like ADAX exchange might become the latest exit scam in crypto projects.

It seems the exchange’s owners have decided to pull an exit scam and disappear with hundreds of thousands of dollars in cryptocurrency belonging to its users mostly from Arabic speaking countries.

The exchange website is offline and all of it’s Facebook and Twitter accounts were noted to be offline. LinkedIn accounts for key employees have also been scrubbed.

ADADX Exchane Exit Scam
A screenshot taken from ADAX exchange before the website goes offline along with its social media accounts

ADAX has been operating since 2017, an had thousands of active Arab speaking traders. The exchange was promoted heavily on social media platforms as well as Telegram channels.

Before pulling the exit scam. ADAX exchange has launched its own crypto coin Arab Coin (ARB) that was traded exclusively on its platform and has hosted couple of successful IEOs (Initial exchange offering) for couple of crypto projects such as MenaPay. Unfortunately, we could not verify the exact trading volume at the exchange.

According to teQatlas.com, Sami El Dwieb is the CEO of ADAX exchange. Dwieb’s contact details appears when performing a domain whois for the ADAX.ae

Adax domain whois

Some Arabic speaking crypto traders have posted couple of videos speaking about the alleged ADAX exit scam.

Disclaimer: TheCoinsPost’s views are not necessarily reflected in the articles published, and they are the sole representation of the author’s opinions. Article’s information should not be taken as investment advice. Risks are involved in cryptocurrency investments and trading. Readers are urged to carry out extensive research before making a decision.

Daily cryptocurrency trader, miner, technology enthusiast and a full time IT and security consultant. If you have any questions or comments please feel free to email him at [email protected]

Exchanges

LocalMonero Announces 6-Month Shutdown Plan

June G. Bauer

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LocalMonero, the peer-to-peer exchange platform for the privacy-focused cryptocurrency Monero (XMR), will be shutting down it’s services after nearly seven years of operation.

As per LocalMonero’s announcement, the crypto exchange will be winding down operations over the next 6 months before permanently closing on November 7, 2024. The team expressed gratitude for the community’s support over the years and assured users that support staff would remain available throughout the transition period.

 LocalMonero was one of the earliest platforms dedicated to Monero, the leading privacy cryptocurrency that obfuscates transaction details to protect user anonymity. The exchange allowed buyers and sellers to meet and trade Monero directly through an escrow system. Users could trade their XMR without the need for centralized exchanges. The service prided itself on its commitment to privacy, a core tenet of the Monero community.

Despite LocalMonero’s closure, the team expressed optimism about Monero’s future, stating “with the imminent launch of Haveno and other DEXs like Serai, atomic swaps, the coming addition of FCMP…as well as the continuing and rapidly accelerating development of the Monero protocol, we’re confident that Monero’s future is bright.”

FCMP, or Full Compact Merkle Path, is an upcoming upgrade that will increase Monero’s default anonymity set to include the entire blockchain, replacing the current “ring” signatures of 16 decoys.

For longtime LocalMonero users, the exchange has outlined clear steps for finalizing trades and recovering funds before the November 7th shutdown date. New signups and trade postings have already been disabled, with new trades being blocked after May 14th.

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Bitcoin

No Evidence of Hack, Says Bitfinex CTO Amid Ransomware Gang’s Allegations

MNabilAli

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In the world of cybersecurity, claims of data breaches can cause significant concern and speculation. Recently, a ransomware group named FSOCIETY claimed to have successfully hacked several organizations, including the cryptocurrency exchange Bitfinex. However, Bitfinex’s Chief Technology Officer (CTO), Paolo Ardoino, has dismissed these rumors, stating that a thorough analysis of their systems revealed no evidence of a breach.

According to Ardoino, who is also the CEO of Tether, less than 25% of the email addresses allegedly stolen from Bitfinex’s servers match legitimate users. This casts doubt on the validity of FSOCIETY’s claims regarding the supposed hack.

The ransomware group, styled after the fictional hacking group from the TV show “Mr. Robot,” claimed to have breached several victims, including Rutgers University, consulting firm SBC Global, and a cryptocurrency exchange they referred to as “Coinmoma,” which is likely a misspelling of Coinmama.

Ardoino expressed skepticism about the group’s claims, stating that if they had indeed hacked Bitfinex, they would have demanded a ransom through the exchange’s bug bounty program, customer support channels, emails, or social media accounts. However, Bitfinex received no such requests from FSOCIETY.

Furthermore, Ardoino shared a message from a security researcher suggesting that the real motivation behind the alleged hacks might be to promote FSOCIETY’s ransomware tools, which they reportedly sell access to in exchange for a subscription fee and a commission on stolen profits. Ardoino questioned the group’s need to sell their tools for $299 if they had truly hacked a major exchange like Bitfinex.

It’s worth noting that Bitfinex has previously fallen victim to a significant hack in 2016, resulting in the theft of a substantial amount of Bitcoin. Two individuals, including crypto rapper ‘Razzlekhan,’ pleaded guilty to money laundering charges in connection with that incident.

Hacking group FSOCIETY published claims

While the claims made by FSOCIETY have yet to be verified by the alleged victims, Bitfinex’s CTO remains firm in his stance that no breach has occurred. As cybersecurity threats continue to evolve, it is crucial for organizations to remain vigilant and take proactive measures to protect their systems and users’ data.

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Exchanges

Smart Contract Hacking Costs Ex-Engineer $12M and His Freedom

sying.tien

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A former senior security engineer was sentenced to three years in prison for executing sophisticated hacks against two decentralized cryptocurrency exchanges, stealing over $12 million worth of digital assets.

Shakeeb Ahmed, 34, of New York, pleaded guilty to computer fraud charges related to the July 2022 hacks. He exploited vulnerabilities in the smart contracts governing the exchanges to artificially inflate fees and purchase crypto tokens at manipulated prices.

Damian Williams, the U.S. Attorney for the Southern District of New York, announced the sentencing and first-ever conviction for hacking a blockchain smart contract. “No matter how novel or sophisticated the hack, this office is committed to following the money and bringing hackers to justice,” Williams stated.

The Two Crypto Exchange Hacks In the first hack, Ahmed exploited a pricing flaw in an unnamed decentralized exchange. He inserted fake data to generate around $9 million in inflated fees, which he then withdrew as cryptocurrency. Ahmed later agreed to return most of the funds to avoid prosecution.

Weeks later, Ahmed struck again by hacking Nirvana Finance, a decentralized exchange for the ANA token. He used a flash loan to purchase ANA at an artificially low price through a smart contract exploit. Ahmed then immediately sold the ANA back to Nirvana at the higher market rate, netting $3.6 million – virtually all of Nirvana’s funds.

After the attacks, Ahmed searched online for information about the hacks, potential criminal liability, and how to flee the country to avoid charges.

Sophisticated Money Laundering Techniques To cover his tracks, Ahmed employed advanced crypto money laundering methods. These included swapping tokens, “bridging” funds between blockchains, converting to privacy coin Monero, using overseas exchanges, and leveraging “mixers” like Samourai Whirlpool.

In addition to his prison sentence, Ahmed was ordered to forfeit the $12.3 million in stolen cryptocurrency. He must also pay over $5 million in restitution to the victim exchanges.

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