Satowallet Team to be Suspected of Scam

Users of a cryptowallet, targeted at Africa, are facing withdrawal issues for almost a half year
26 September 2019   517

The developers of the Satowallet cryptocurrency wallet, allegedly, have appropriated more than $ 1 million, each time finding new reasons not to pay users their funds, writes Finance Magnates.

Satowallet was founded in May 2017 and, according to official information, is based in Dubai and also has a representative office in Nigeria. The main target audience of the service are residents of Africa. Satowallet offers support for more than 60 cryptocurrencies, including Bitcoin, Bitcoin Cash, Litecoin and Ethereum.

Users began to have difficulty withdrawing funds in April. The company referred to temporary technical problems and at the same time announced the launch of the SatowalletEX exchange. Responding to user complaints, the developers said that several attackers took advantage of the wallet update to steal their funds. Later, they reported the elimination of the vulnerability, but introduced manual transaction processing and forced verification of users, which is why the withdrawal of funds was inevitably delayed for several days.

In August, Satowallet users found that they could not access the platform. The CEO of the company explained that all eight servers responsible for the operation of the wallets, application and website were out of order. After some time, the developers reported that they were able to restore the service due to backups received from the OVH data center. However, there were no user assets in wallets.

OVH claims that server maintenance was suspended due to an unnamed violation. The creators of Satowallet, for their part, continue to blame OVH for fraud and withhold user funds.

Bithumb Filed Appeal Against Korean Tax Office

Looks like the korean exchange doesn't really want to pay an additional tax worth $67 000 000
16 January 2020   100

The South Korean cryptocurrency exchange Bithumb has filed a complaint against the National Tax Service (NTS) because of the requirement to pay additional taxes for the transactions of its foreign customers.

The company claims that cryptocurrencies do not have an official status in the territory of South Korea, which is why the authorities cannot have sufficient reasons to levy any taxes.

The tax court will have to decide within 90 days whether to retain or withdraw from Bithumb the obligation to pay the $ 69.1 million tax that was assigned to it by NTS in November. The Office declares that the withdrawal of income from accounts in Korean won by foreign residents is a taxable event. It is assumed that the exchange itself had to withhold tax from its foreign customers.

We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.

 

Bithumb

 The ministry has its own position on this issue.

Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.

 

Choi Hwoa-in

Adviser to Financial Supervisory Service

According to the expert, the NTS maneuver is well thought out and aimed at starting to levy a tax on income that is currently not taxable.

We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal.

 

NTS

Earlier, Bithumb was ordered to pay an additional $ 67 million in tax.