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Bter is stealing XCR from its users

bter steal crypti

Two days ago Bter sent 2.5 million Crypti (XCR) (https://cryptichain.lisk.io/tx/6577272380594449021) to LISK ICO without any public announcement. Although there are around 7.72 million XCR sitting on their hot and cold wallets. There were still many people who were accusing Bter was stealing users’ money to join the initial coin offering (ICO).

bter_crypti

Actually Bter withheld users altcoins’ withdrawal including XCR since the hack, with the given reasons “due to technical maintenance altcoins’ withdrawals are terminated” shown at the pop-up window. I contacted their support line 4000070955 over phone about Crypti withdrawal and participation of the ICO, a girl answering my call gave the same reasons and denied the fact of the participation. She tried to comfort my concern and ask me not to worry. She said they would return the coins when the wallets were fixed. Users made many urgent requests to withdraw XCR to participate the LISK ICO with the concern that XCR will fail and its price would drop to zero after the ICO. But Bter was always giving excuses to delay the withdrawal,like crypti wallet blockchain cannot synchronize, they were contacting XCR officials to find resolutions etc. Unfortunately until the end of the ICO, Bter still couldn’t manage to unfreeze the XCR to the users. One user claimd that Bter offered one solution at the LISK chat room that basing on the requested withdrawal amount users can redeem LISK. The users requested XCR withdrawal heard about this and would definitely be happy. But for those who haven’t got a chance to get the message about this and haven’t requested XCR withdrawal, and missed this opportunity of taking part in this ICO forever. I could easily assume that the 2.5 million XCR is users’ money. Once bter receives the ICO money LISK, they will be returned to the lucky users. Some user posted the Bter’s support’s message saying “all the Bter users who failed to do the withdrawal during the ICO can ask us for Lisk” from Bter support Lily. I really doubt it. Bter only sent 2.5 million SCR to take part in the ICO and will only receive the corresponding amount of Lisk. The other 7.25 million SCR sitting on their wallets would be still on their wallets and has no chance to get them exchanged to Lisk from the ICO.

It is quite sarcastic that we could see from crypti blockchain that Bter cold wallet (https://cryptichain.lisk.io/address/983470101446368718C) and hot wallet (https://cryptichain.lisk.io/address/6746720336938643271C) has transactions before the end of the ICO and especially the hot wallet are sending out from time to time. How come did Bter say they have no synchronized blockchain? I heard some member was probably on behalf of Bter and claimed they sent the crypti from Lisk’s system. How could is it impossible? The Lisk team wouldn’t bother accepting the shady money. Due to the pressure from people who were accusing Bter and asked Lisk team to burn the sent crypti from Bter, the lisk team are headache at the moment and looking for some solution to comfort the investors.

Max Kordek, CEO of Lisk team said:

I will talk with Oliver and our advisers about what we do with Lin’s XCR deposit. We don’t want to make a crude statement.

Their crypti wallet are working pretty well but still freeze the users’ fund. It proved that Bter is untrustworthy. Many people assume that Bter was to make XCR holders panic and crypti holders had to liquidate XCR at lower than market price to get a chance to withdraw BTC. Bter can grab a lot of cheap coins at this time.

It is common knowledge that Bter was hacked 7170 BTC at February of last year from its cold wallet. Then Jua came out, financed 1000 BTC without interest and helped Bter recover from this incidences. This loan will be provided in exchange for equity in Bter, Jua.com will now handle all the platform’s cold wallet security. Bter still frozen users’ money and promised they would repay outstanding money with the recurring transaction fees. But Bter has lost its reputation and most of traders wouldn’t go there. Current Bter daily trading volume is only 648 BTC and income will be 1.296 BTC based on charged 0.02% trading fees. To repay 7170 BTC to its customers, it will take 15 years of smoothly running the business without any incidence or wages paid to its employees. Many users are complaining the deposit and withdrawal delay at bter now. Bter is losing customers day by day.

Why people are sending Crypti to Lisk ICO?

Crypti development team are running out fund and are divided how to go further. Then its team members Max Kordek and Oliver Beddows left and created Lisk based on Crypti. They raised fund through Initial Coin Offering (ICO) and accepted Crypti. The ICO is quite successfully and raised 14,080 BTC and 80,742,574 XCR. During the ICO, Crypti team announced that

The Crypti Foundation will focus on supporting critical bug fixes for a period of 6 months, as well as funding delegate costs and maintenance of the network for the same 6 month period. During that time, additional development and production moving forward will be handed over to the community.

They claimed they are fully behind the launch of Lisk. It means they are supporting Lisk and at some extent dumped Crypti. This hit Crypti hard. Many people were fear, sent Crypti to Lisk ICO to exchange Lisk, and have a chance to get some decent profits. Around 80.7 million Crypti are sent to Lisk ICO. Lisk team controls 80.7% of Crypti’s total supply. How they will deal with it is becoming controversial to them.

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