Trusted Exchanges, Our Community’s Experiences

c-cex

Dear XTRABYTES™ Community & C-CEX traders,

It was brought to our attention that some XTRABYTES™ investors were affected by the C-CEX exchange’s recent decision to delist XBY.

Although a different situation, this is similar to what transpired with YOBIT, where, after several requests, Yobit failed to act and update the XBY wallet. This has resulted in improper communication with our Blockchain and therefore, no withdrawals or deposits are possible through the Yobit exchange. https://bitcointalk.org/index.php?topic=1864397.msg26648858#msg26648858

After the YOBIT scenario began, we created tutorials on how to move your coins to your wallet and advised people not to leave coins on any exchange. https://bitcointalk.org/index.php?topic=1864397.msg21595292#msg21595292
https://www.youtube.com/watch?v=gqC0Au9l0iM&t=60s

Regarding C-CEX:

Anyone who was trading regularly at C-CEX would know that the XBY wallet (and many others) went into maintenance mode on a daily basis (sometimes for a few minutes and other times for some hours). This meant no trading was possible and over time (as more and more people became disappointed with the exchanges habits) the volume decreased below the required activity level to remain on the exchange.

Additionally:

C-CEX repeatedly goes into limited functionality mode while they go on vacation:

https://steemit.com/gridcoin/@lumendan/c-cex-announce-3-month-limited-service-period

https://bitcointalk.org/index.php?topic=418700.msg38330395#msg38330395

They also have a non-activity clause for both the consumer and the coin. If your account is dormant for a period of time, they will disable the account. The result is locked coins on the C-CEX exchange. It is unknown what happens to these coins which has led to much speculation.

More recently, C-CEX informed their members that they would be delisting XBY (and many others) due to inactivity. They deleted the XBY coin from their site 5 days early (right after we began to publicly deal with this matter with announcements and questions to them).

Prior to this, on June 17th, XTRABYTES™ co-founder, Dave (CCRevolution), discovered that his personal account on C-CEX was disabled. He contacted Yuri (supposed owner [unsure of correct name spelling]) at C-CEX for assistance (as seen below). No reply was given, possibly due to vacation, however nearly 2 months later Yuri (C-CEX) did contact him and sent a message claiming that their XBY wallet was drained of XBY due to fees we were charging (this came after the delisting process was posted on the C-CEX site and shortly after XTRABYTES™ posted a warning on our announcement page in Discord).

We then replied to our support connection, who we believe is the owner, to ask for an account listing of all the affected XBY trading accounts (see screenshots below). This was also after he informed us their XBY wallet was at zero due to these “strange” XTRABYTES™ transaction fees.

After waiting for more than a week, there has been no reply from C-CEX.

Facts

  1. Exchanges use the “altcoin” wallet to hold all traders’ deposited coins (this is known as a cold wallet). Once deposited, ownership of the deposited traders’ coins transfers to the exchange (they hold the private key for the wallet). The exchange then replicates these deposited coins into the form of tokens which are then used to trade within their exchange platform. This process is all invisible to the trader. The result is 2 copies of the coin: the real coin (in the exchange’s altcoin wallet) and the replicated version (on the exchange).
  2. The trading fees charged by the exchange go directly to the exchange. When a deposit or withdrawal (using the altcoin wallet) is made, there is a software level fee programmed into the wallet. In the case of XBY the fee is 1 XBY and has been since the beginning of the year. In other words, the exchange is responsible for any fees internal to their exchange and the altcoin company is responsible for fees within their respective wallet.
  3. The fee XTRABYTES™ charges is 1 XBY per transaction (outside of the exchange). C-CEX is stating we charged 500 XBY every time a transaction was completed (as per the screenshot below).  This is incorrect and when we addressed this with the exchange they went silent. (you can use the new block explorer to see the actual fees).

4. C-CEX has offered many excuses for incidents involving different coins. Are they a reputable or trusted exchange? You be the judge. Here are several other companies experiencing the same issues with C-CEX.

  1. https://bitcointalk.org/index.php?topic=2821586.0
  2. https://www.dash.org/forum/threads/c-cex-com-where-is-my-money-or-how-c-cex-com-stole-308-dash-and-got-away-with-it.16495/
  3. https://forum.infinity-economics.org/forum/english-forum/announcments/22959-action-required-c-cex-lost-xin-coins

We are disheartened that activity like this takes place and seek to educate the public on how they can protect themselves. You can help your fellow investors by spreading the word as to what has transpired with C-CEX. In addition, XTRABYTES™ will also be publishing several blog posts relating to exchanges. Please read them and educate yourselves on how to protect your investments.

Due to these questionable activities, we have elected to be as proactive as possible so as to sort this situation out in the best interests of  XTRABYTES™ investors. Accordingly, XTRABYTES™ wishes to absorb some of the impacts of this unforeseen incident.

The activity around Yobit is different as the coins are still active. We will be pursuing legal action with this questionable exchange.

Please note that this is the one and only time we will ever get involved with replacing losses on an exchange (C-CEX or possibly Yobit). Cryptocurrency has inherent risks and although XTRABYTES™ strives to do its best to minimize risk and fight against loss and theft, there is only so much that can be done. Investors need to take responsibility for their accounts and investments. We show you what to do, we encourage you to do it… but we cannot force you to do it.

Why are we doing this?

To quote the Founders “It’s the right thing to do”.

The Process

1) We want everyone affected, to gather your screenshots from C-CEX and Yobit. We understand that some accounts may currently be disabled and that filing a ticket is the only option to gain access to your account.

As indicated in the following C-CEX post, if your account is disabled for any reason, send a ticket: https://bitcointalk.org/index.php?topic=418700.msg38335465#msg38335465 (note that it took less than 1 week to sort out the account)

Upon recent investigation the C-CEX support queue is full.

Their support queue has been like this for over a week and they have failed to respond to our requests. Once you’re able to access your account, we will require a screenshot of your XBY transactions/wallet (screenshots are required for auditing purposes).

Transactions for C-CEX will be honored up to Friday, September 21st, 2018. Screenshots of your Yobit account could be required at a later date. Please make sure you save these in case a similar situation arises and you are locked out of your account.

2) Create a support ticket using the guidelines below.

3) We will continue to try to work with both C-CEX and Yobit.  Hopefully, they will agree to correct their respective issues and enable transfers out to a local wallet.

4) Reimbursement

C-CEX: If XBY cannot be withdrawn from C-CEX then XTRABYTES™ will reimburse to a maximum of 4 million lost XBY at a ratio of 50% in the form of XFUEL (this is how many were visible in C-CEX when we last checked before they started their delisting process).

Example: if you lost 5,000 XBY you would be reimbursed with 2,500 XFUEL.

This will allow you to trade back to XBY later to recoup some of your lost investment. If you do not know or understand XFUEL, visit the XTRABYTES™ Discord and join in the conversation (https://discord.gg/sbkaZj) or visit (https://support.xtrabytes.global/hc/en-us/articles/360000066551-What-is-XFUEL-).

5) We are offering this reimbursement window from Monday, September 22nd to Monday, November 5th, 2018. During that timeframe, you will be able to file a claim with the XTRABYTES™ Support Team. This is to provide C-CEX time to resolve any issues on their end resulting in freeing up your accounts/coins.

6) Action not taken within this timeframe will result in forfeiting any chance of reimbursement.

7) If C-CEX resolves their issues with your account and you can transfer your XBY to a secure wallet then there is no need for you to proceed with a claim. If there is a claim in process, please let us know (ticket number will help) and we will cancel your request.

When will you receive your reimbursement?

Reimbursement will not occur until after the registration of STATIC™ nodes has begun so as to not disrupt other traders and our employees. We feel this is the only fair way to offer this reimbursement. Otherwise, everyone else who heeded the warnings is essentially paying for the lack of action by those affected by the actions of C-CEX and Yobit.

We truly hope everyone can learn from this. This is a lesson for everyone to understand that anything you leave on an exchange (even the bigger and better ones) does not belong to you and that you can lose your assets at any time. ONLY leave coins you are trading on the exchanges or run the risk of losing them.

Reimbursement Process

Please submit all requests through our Support process on the XTRABYTES.global site. https://support.xtrabytes.global/hc/en-us/requests/new

Moving forward, XTRABYTES™ will be reviewing and examining new exchanges, not only in regard to their volume but to their customer service as well (and whether they address issues and concerns in a timely manner). A list of supported exchanges is always available on our website at the bottom of the page.

We value you the investor. We believe that you play an important role in informing future investors about your experiences with various exchanges. Please continue informing your peers on all social channels about these experiences (both good and bad), Doing so will help mitigate any future issues that these exchanges might present.

Thanks

The XTRABYTES™ Leadership team.

Would you like to know more?

We don’t just publish articles, XTRABYTES™ is a whole new blockchain platform that allows DApps to be programmed in any language, utilizing a new consensus algorithm called Proof of Signature. In doing so, XTRABYTES™ presents a next – generation blockchain solution capable of providing a diverse set of capabilities to the general public.

You can learn more on our website where you can also help to spread the word through our bounty program and get rewarded in XFUEL™, or join our community and hop into the discussion right now!

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SHOW COMMENTS

  • CoP

    I am glad you guys address every concern in a very professional manner. I don’t keep coins on an exchange but understand that in order to have liquidity we need more people on exchanges. It is mandatory to use the most reputable ones. Great job XBY team, i’m glad to be onboard and confident to see a bright future ahead.


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