Gandalfs Scam Report Vol III: No Face No Case

CryptoGandalf
3 min readOct 17, 2020

I came across the platform bitniex.com. It claims to be a cryptocurrency exchange. The venue itself looked professionally done. I was looking for arbitrage opportunities on the internet, and I found a nice-looking bot in Telegram. I joined myself to channel, and about one hour after, it informed me that it had found a superior cross-exchange arbitrage position, a little over a 4.5% price difference. Trade was between Binance and a company called bitniex.com, an exchange platform, or so they advertised themselves. In any case, I went to their site and started to check it out.

A closer look reveals the ugly truth of it. The site itself was looking well coded and professionally done, but closer examination reveals many mistakes what legal exchange platform would never have. And of course, their prices are that much higher than other platforms, that they always deliver arbitrage position for you — what a surprise, with any coin available.

Yeah, right, the company is supposed to register in Delaware, but checking the link leads to the management company, which sells companies there, not to the Bitniex info page. Github link doesn’t work, and in bots telegram channel, the Binance link goes to unexisting page 404. Of course, you cannot communicate with the other members. The next thing I checked was Trustpilot, and the story goes even more ridiculous, as the pictures below show to you.

And if you think you can believe in Trustpilot’s reviews, you cant, at least not blindly, and in many cases not at all, when you are checking crypto-based companies there. Here are the screenshots from the Bitniex page at TrustPilot. For many of the scam sites I found in TrustPilot, their overall review rate was 5 star. And also, very well known and legitimate companies were reviewed very poorly, Binance, for example, 2.7 stars. Sad but true.

Different kinds of scam sites are hundreds, if not even thousands there, up running, so I found out what to do and where to inform when you stumble upon one. First of all, it depends on where you live.

--

--