C2CX is a China-based centralized cryptocurrency exchange. Its website doesn’t provide any meaningful information about the owners, the operating company, date of establishment, or the team behind the project. All in all, it is one of those exchanges which remain covered in mystery. The information on the C2CX LinkedIn page states that the platform “is a 3rd generation digital asset exchange built and launched by the China-based IT Group.” It continues to say that C2CX was launched in 2015 as a propriety trading platform, and in February 2017 as a public exchange. At the time of this writing, the traces of the proclaimed founding company, IT Group, can’t be found.
The description on the exchange’s LinkedIn page features lots of buzzwords and isn’t shy of compliments as it states that it is a “unique combination of high liquidity, advanced functionality, industry-leading customer service and cutting-edge blockchain expertise.” However, all of this remains on paper, and there are no real facts to confirm these statements.
If we should summarize what describes the C2CX exchange in the best possible way, we should point out the lack of transparency. Even the company’s address, listed on its LinkedIn page, is fictional. At the time of this writing, C2CX claims to be headquartered in “Cyber City, Cyber State.” According to some third-party reports though, C2CX is registered in Luxembourg. Although the exchange points out to have from 11 to 50 employees, there is only one person with a LinkedIn profile. His name is James K. at the position of Project/Product Manager. Although his profile indicates substantial industry experience and academic background from leading universities, it remains to be confirmed whether the individual is a real person (the profile doesn’t even have a picture).
By analyzing the limited information on the exchange’s website, we find out that it in regards to security, it claims to employ measures, such as SSL-protocol, hot and cold wallets, two-factor authentication, and risk-analysis system. C2CX claims to be storing all data offshore “outside the NSA cloud.” Although these measures may seem promising on paper, in reality, it is hard to tell whether they exist. On the topic of users’ personal data protection, C2CX states that it complies with the “specific AML and KYC policies as per regional jurisdiction.” According to the exchange’s “Terms and Conditions” page, individuals who trade virtual currencies aren’t required to verify their identity, but those who want increased daily withdrawal limits should do that. A statement like that fails to prove how effective the adopted KYC and AML policies really are.
C2CX states that due to the fact there were many cryptocurrency exchanges which “failed due to a lack of liquidity”, its platform was designed “from the offset with a built-in market maker to prevent this from happening.” In its “FAQ” question, the exchange features a question about its trustworthiness. It answers by stating that “C2CX had run full range of internal tests in its more than two years development to eliminate a variety of system vulnerabilities.” It proceeds to say that the platform is equipped with “multiple and all-including hardware and software security measures and policies.”
Regarding customer support, the exchange’s team provides several options of getting in touch with them that even the most sophisticated exchanges lack. C2CX claims to be available for contact via email, phone, social media, live chat, and a ticket system.
All in all, the information coming directly from the C2CX team makes it sound like the platform is the best place for cryptocurrency traders. However, when we take a look beneath the surface, some very concerning facts start to appear. The lack of information regarding the owners and the background of the company aside, at the time of this writing, C2CX has a terrible reputation among its clients. The majority of them report about stolen funds, failed attempts to withdraw their cryptocurrencies, unresponsive customer support, and so on. Several of the platform’s clients express their frustrations about being unable to get in touch with the customer support, pointing out that after weeks of failed attempts, their accounts were deleted with no further information or reasoning. This seems a very probable scenario, considering the information on the platform’s “Terms and Conditions” page, which states that “C2CX reserves the right to suspend or terminate any Services Agreement for any reason.”
Threads on Bitcointalk and Reddit refer to a person, named Scott Freeman, who is claimed to be the real CEO of C2CX. Users describe him as a “serial scammer.” He is also accused of having links with Russian crime organizations and previous experience in several failed ICOs. His two companies, IT Group and IT Resources, are also described as “scam schemes”. There is no information about the particular person, except one article in Forbes where he analyzes the Chinese cryptocurrency landscape.
At the time of this writing, C2CX has no history of hacker attacks, security breaches, or government investigations.