On July 1st, 2019, suspicious activities concerning two BaseFEX accounts were detected and had consequently triggered security alerts. Automatic ban was initiated as a temporary measure to prevent such suspicious activities from harming the greater BaseFEX trading community.
Right after that, there had been some unusual surge of new accounts joining our Telegram group. Untrue claims were made by them. As they refuse to provide their BaseFEX IDs, we were not able to verify if they belong to real BaseFEX traders. To keep this group useful for real BaseFEX traders, we had to remove these accounts from the Telegram group.
These Telegram accounts also have made threats and personal offenses towards our employees and our employees had to block these accounts in private chat.
We also have received complaints from our Twitter followers concerning similar harassments.
After a two day investigation, our engineering team has concluded on the nature of this incident. It is detected that these two accounts had been engaging in long-time and extremely high-volume server attacks that had have a substantial impact on BaseFEX servers’ network conditions. As a result, the rest of BaseFEX traders’ ability to place order was severely undermined. This has generated considerable amount of unfair, if not illegal, earnings for these two accounts, at the expense of other BaseFEX traders. Among which, 11.7 BTC has already been withdrawn.
Malicious activities that benefit themselves at the expense of other traders, such as server attacks, are not only against the very spirit of our community, but also in direct violation of our Terms of Service item 1.2 (a) (b) (d) (e) and thus, we have zero tolerance for such activities. After careful consideration, it is decided that we will permanently discontinue our service with these two accounts and the person(s) who possess them.
BaseFEX reserves the right to press criminal charges against the person(s) responsible for the aforementioned malicious activities and slanders. We also reserve the right to pursue other legal actions including civil litigations, in order to recover BTC losses for our entire trader community.
BaseFEX will always strive to fight against all forms of malicious, prohibited activities to ensure fast order placement for legitimate traders.
July 3, 2019