Horizen, creator of the ZEN token, has issued a warning to users over the cryptocurrency exchange Bitfare, which it alleges may be operating as a scam.
According to an official blog post published Jan. 4, Horizen is warning users to steer clear of Bitfare as it has reasons to assume the exchange is a “malicious entity looking to take advantage of trusting users.” Horizen asks users not to send ZEN or any other cryptocurrency to the exchange.
We have enough reasons to assume that Bitfare is a malicious entity looking to take advantage of trusting users.
Please do NOT send ZEN, or any other cryptocurrency, to Bitfare or attempt to utilize any other services it might offer. Read for details now: https://t.co/xWzc2FoSDY
— Horizen (@horizenglobal) January 5, 2020
The blog post follows an announcement made in December that Bitfare had begun supporting a suite of ZEN trading pairs.
According to the update,
In the hours following the 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.
The report continues,
As of today, the 4th of January, the minor customer issues have escalated to wallet balances and deposit histories being reset without explanation.
Horizen is urging the community to exercise “extreme caution” when sending ZEN to any custodial exchange or service provider and claims to do due diligence prior to listing organizations. The company says it will limit future collaboration announcements to “well established custodial exchanges and services that have significant track record of success” in order to limit the potential for more scams.
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