Missing Funds On Bitbns Baffled Crypto Users

Jun. 30, 2023
Missing Funds On Bitbns Baffled Crypto Users

On the morning of June 27, several investors panicked when they found that their accounts on Bitbns, one of India’s largest crypto exchanges, were completely empty. Users said that when they woke up, they were shocked to find that their deposits in INR or cryptocurrencies were wiped out overnight.

In 2017, Bitbns was established with a clear vision to become a leading cryptocurrency exchange. Its main objective was to offer people a simple and trouble-free way to access the advantages of crypto assets.

However, on the morning of July 27, 2023, the exchange experienced a worrisome turn of events. This sudden event worried investors and led to the rapid appearance of many distress signals on various social media sites.

A user shared his heartbreaking and emotionally overwhelming experience of losing his investment of around 12 lakh rupees ($16,000) without a trace. 

Another customer, whose portfolio was worth 7.06 lakh rupees ($9,500), was also in a similarly upsetting situation.

Moreover, investors have reported instances of unauthorized trading on Bitbns, raising their concerns. Some users noticed in their trading history that all their cryptocurrencies were sold without their permission. However, the income of INR from these sales did not appear in their accounts.

Furthermore, the crypto platform suspended withdrawals, leaving investors in a difficult situation.

Some users are suspicious of Bitbns, saying it might be a scam.

Bitbns’ Response

Bitbns tweeted that a problem during the overnight database upgrade resulted in zero users’ balances. Gaurav Dahake, CEO of Bitbns, told Business Today it was a “minor technical glitch.”

He further added:

“The current situation is not the result of any external security breach but of a minor technical glitch that our top-notch engineers are actively working to rectify.”

In another tweet, the company assured that they successfully resolved the issue. The crypto exchange was offline for nearly 7 hours after the issue of no user balances was brought to light for the first time. Many users confirmed that their accounts are starting to show normal balances.

This story is a great reminder of the volatility and risk associated with the promise of high rewards in the crypto industry. Also, having good policies is crucial to ensure the safety and security of the crypto industry.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.