YoBit is a centralized cryptocurrency exchange, founded in 2015 in Russia. Although it is not a new name in the crypto world, it is hard to find any meaningful information about the exchange itself and its owners. In this regard, it is quite unique, as the exchange remains one of the very few cryptocurrency trading venues which doesn’t provide any information regarding where it operates from, who owns it or who forms its team. You won’t find any information on its website about where the platform is registered either. Its website resembles more of an anonymous trading platform, rather than a representation of a public exchange.
The internet is full of positive reviews of YoBit, most of which explain how to set up your account and start trading. However, none of them explains why there is no specific information about the exchange’s owners or history. All this may be reasonable, considering the fact that YoBit has made the headlines multiple times with reports of suspicious activities, fund withdrawal-problems or pump-and-dump schemes.
The most notable scandal, related to the exchange, took place on October 2018, when the venue revealed that it would start pumping random coins, listed there. This resulted in artificial changes in the prices of the target coins.
Another widely-reported case took place in March 2017, when YoBit became a subject of an investigation by the Russian authorities. The local telecommunications regulator Roskomnadzor launched an investigation on the exchange for alleged fraudulent activities, caused by inconsistencies with exchange rates that allowed the venue to profit on the expense of its users. YoBit reacted to the case by describing the news as “fake and paid” and urged its clients not to pay attention.
In a 2017 Business Insider investigation, YoBit was accused as a website for “pump-and-dump” scams. In its in-depth research, Business Insider observed pump-and-dump schemes for several cryptocurrencies, including Chill Coin, Magi Coin, UBQ, Indorse and VCash, taking place on YoBit and Bittrex, a Las-Vegas-based exchange. Business Insider clarified that it was unclear whether the exchanges were aware of the pump-and-dump schemes taking place on their platforms, which is why they got in touch with each of them. YoBit, however, did not respond.
YoBit has a history of suffering security breaches as well. At the start of 2019, on January 9th, the exchange became a victim of a 51% attack, which resulted in a steal of more than 130 000 ETC. However, a few days later, on January 15th, the exchange tweeted that the hacker has returned 94% of the stolen assets and kindly thanked him.
Another disadvantage for the exchange’s public image is the FAQ section on its website, which is limited to just ten general questions. One of the questions there relates to the time it takes for their customer support to address a user’s request. According to the exchange’s answer, a “major quantity of responses comes to users within an hour, but sometimes it takes up to 24 hours to send the response.” This is hard to believe, considering the large number of frustrated users on forums such as Bitcointalk and Reddit who are left waiting to have their issues resolved for weeks. Users’ raise all sorts of claims - from missing coins in their accounts, through inability to withdraw funds, to blocked accounts and trading restrictions. However, the YoBit’s team ensures that they are working on improving the customer support department’s efficiency.
YoBit’s website also offers a feature called “Dice” which is basically a game of dice. This sort of gambling is complemented by the InvestBox option which is described as a sort of an investment tool that makes it possible to earn up to 10% from the cryptocurrencies deposits daily “without any efforts.”
The fact that YoBit is an unregulated exchange which lacks background information (intentionally or not) and has a shady history raises a red flag for any investors considering whether to choose this trading venue.Read More