Recently, Bitcoin worth $3.6 billion has vanished from a crypto investment platform run by two South African brothers. Even the owners of the exchange are nowhere to be found. The Hawks from the national police force have now been reported about the matter. So, they are trying their best to locate the brothers. They have also asked all global crypto exchanges to keep an eye on any attempt at conversions of these coins to fiat.
The fishy behavior of the brothers
The brothers might have thought a lot about this because their behavior was fishy for quite some time. In April, the elder brother, COO of the company, informed the clients that they had suffered a hack. But instead of reporting the same to the authorities and lawyers, they refrained from doing so. According to them, this would have slowed down the process of recovery. But we all know that crypto funds are not recoverable unless culprits are caught.
After this happened, some investors grew skeptical over the behavior of the brothers. So, they started liquidation proceedings against the crypto exchange. The call of not taking any legal action was the red flag for them. After investigation, it was found that funds were transferred from users’ and clients’ accounts to a different wallet. And all these transactions were passed through Bitcoin mixers to make them untracable.
After this, when the authorities tried to reach the brothers, their phones went directly to voicemail. The company website was also down, and nothing was clear about what happened. Even after all this, the government has not launched a legal investigation as crypto is not considered a financial product. BUt they are looking into the matter passively, trying to grasp at the straws here.
Not your keys, not your coins
A central authority does not control cryptocurrencies; therefore it is clear that once a transaction is made, it cannot be reversed. This is why it is very important to have full possession of one’s coins. For anyone looking to hold their coins long-term, it is important to have them in hardware or a software wallet with one’s keys. This makes it impossible for the hackers to get hold of your coins because they don’t know the password.
What are your thoughts on the $3.6 billion worth of Bitcoin vanishing from the crypto exchange? And do you think that such cases are becoming more common? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Nigerian central cryptocurrency to launch this year.