Possible Scam? Horizen Warns Against Crypto Exchange Bitfare

The crypto exchange was set up in September 2019.

ZEN token-issuer Horizen has warned against trading on Bitfare, alleging that the digital asset exchange is possibly running a fraudulent service and trying to scam their customers.

Founded last September, the Wellington-headquartered exchange lists dozens of digital currencies, including both popular ones and lesser-known tokens in the market. Notably, the exchange offers trading pairs against six digital currencies – BTC, ETH, BSV, USDT, USDC, and TRX.

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As the exchange is on a listing spree, it announced the addition of ZEN on December 19 and offered four trading pairs for the digital currency.

Horizen also propagated the listing news to its user base.

Serious complaints from customers

However, the token-issuer on Saturday alleged that its multiple users are facing numerous issues relating to their deposit history and wallet balance.

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“In the hours following the [listing] announcement, we were made aware of numerous minor customer service and user experience issues which led us to pull the original announcement from all channels on the 20th of December. As of today, the 4th of January, the minor customer issues have escalated to wallet balances and deposit histories being reset without explanation,” the company stated.

The company has warned the community to restrain from sending any deposits to the exchange, as it could be a possible scam.

“We suggest that users do not send ZEN, or any other cryptocurrency, to Bitfare.io or attempt to utilize any other services it might offer,” the announcement added.

Suspicions grew when even after 48 hours of such serious allegation, the crypto exchange did not issue an official response.

The warning seems to be effective, as the volume of ZEn-trading reported by the exchange is not significant in the last 24 hours.

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