Breaking: Satowallet Loses Millions of Crypto To Hack? - BlockNewsAfrica

Breaking: Satowallet Loses Millions of Crypto To Hack?

Users of Satowallet, a Nigerian owned cryptocurrency wallet have been unable to access their funds since August, as developers blame a server hosting hack.

Satowallet is a Dubai based cryptocurrency wallet and exchange led by CEO Samuel Ben with parent firm, Blockchain Tech Hub, having its office in Abuja, Nigeria. 

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Satowallet users have been unable to access their funds since August 2019, in what the Satowallet team claims to be a hack on a third-party platform.

According to stories making rounds on the internet, the Satowallet team claims that their hosting provider Ovh data center had some technical issues that led to the loss of funds. 

Speaking to BlockNewsAfrica on the issue, Satowallet CEO, Samuel Ben described the problem as a third party problem – data hack that has affected their services to their customers. He said:

The current situation with satowallet is a third party issue which affects us directly. The third party here is OVh data center company where we host all of our decorated servers, and made it know to them that we are a crypto company using their service to host the nodes of our wallets.

According to him, the problem started in August 2019 when users began to report that there were unable to access their funds and the website.

All was fine with them for years until August when all the server including web, app, Wallet, suddenly went offline . We reach out to them and they said server was stuck and they were resolving for hours, to days, then we had to setup new servers to put website and app back up with our backup , but they was Wallet nodes backup was empty after restoring. When we keep on pressing on them, they finally came out and said server was gone for abuse which they cannot explain .

Breaking down what he said, the CEO of Satowallet claims their wallet hosting providers botched their services and lost their backed up data which included their wallet node.

What this possibly means is that the cryptocurrencies kept on the Satowallet that were included in the nodes lost after the back up was uploaded online have gone missing.

This assertion was confirmed in the latest press release by the Satowallet team. According to the release:

“After wallet installations, we noticed that the coins were no longer there from the backups and private keys, then we reached out to OVH again as this was no longer funny:” 

People React To Hack

Satowallet has a huge community base with over 24,000 members in their Telegram group that is now open to comments from admins only. Various users took to Twitter to react to the reported hack, claiming Satowallet has been unfair with their way of handling the issue.

Here are some reactions:

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Aside from detailed reactions from users on Twitter, some called the project an outright scam without much information to support their claim.

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The Way Forward For Satowallet

Satowallet intends to get back online and restore funds lost by users in this hack. Still speaking to BlockNewsAfrica, the Satowallet claimed that: 

We are starting up the system as we have gotten support from several project team who are offering to restore back to us the coins so Trading can begin again. We hope for the best

Furthermore, Satowallet updated their blog post with a statement indicating that they will be up and running again.

” Shronghands Team has reached out to us after reading this publication, and offered to provide replacement for every of their users coins so we can kick start the exchange. We have also gotten the support of 60% of our top users with highest balance who are ready to kick start the platform back with us.We appreciate everyone who has placed their trust in us in this trying time, we also hope to get more supports like this from other project teams and we will kick start Satowallet while also going after OVH who have refused to reply.”

We are reaching out to OVH data center for their response on this issue and will update our readers accordingly, plus any updates that may arise from this developing story.

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BlockNewsAfrica is a Ghanaian based media company that will provide information and data on the developments in the cryptocurrency and blockchain technology industry on the African Continent.

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