The cryptocurrency exchange CREX24 had problems with the Brazilian community recently, when it was exposed for trying to hush up a hack case, however, instead of trying to solve the situation and recover its reputation, the company is ceasing to offer services to Brazilians. CREX24 users trying to log into the platform are receiving an email stating that accounts in Brazil can no longer use the platform.
“Hi! You received this email because your account was logged using a Brazilian IP address. Unfortunately, our broker is unable to offer services to residents of Brazil.”
Not only that, the email also informs that those who have cryptocurrencies on the exchange need to make the withdrawal before, within two weeks, possibly blocking the cryptocurrencies after the deadline.
“If you are a resident of Brazil, please withdraw your funds from our broker before June 7, 2022. Please contact our customer support if you are having problems withdrawing.”
Therefore, the brokerage is officially out of action in Brazil, even with a deadline for customers to recover their cryptocurrencies. Crex24 did not publish a statement explaining the decision to stop offering services to Brazilians and on social media it says that it does not only offer its services in the UK, USA, Canada and Israel.
Unfortunately, you’re right. IP restriction.https://t.co/wZMbT1QvYb
The service operates in all countries except the UK, USA, Canada and Israel. — Crex 24 (@Crex_24) January 22, 2019
According to the official website, CREX24 is based in Estonia and most of its customers are in Russia. Estonia is not considered a hostile country for cryptocurrency companies and there have been no changes in the laws that would require such companies to stop offering services in Brazil, leading to the belief that this is a decision of the company itself. Crex24 was approached to comment on the decision, but until the closing of the matter, it had not sent a response.
CREX24 broker was accused of trying to stifle hacker attack
In 2020 the exchange was accused of trying to smother a hacker attack, which was affecting customers around the world. The situation ended up leaving investors unanswered and causing others to lose money. After the hack, the brokerage increased the difficulty of KYC approval with various allegations. Several currencies were left with interrupted withdrawals and deposits and no formal position on the settlement of the situation was taken for weeks, all signs that an insolvency exit scam was about to happen. At the time, a customer who spoke exclusively with Livecoins, but preferred not to be identified, declared a huge loss. There were about R$ 150 thousand lost at CREX24. Similar cases have been reported on several websites. Apparently, the broker was so exposed by Brazilian clients that it decided to take revenge by not operating in the country. Furthermore, it is possible that trust issues have caused financial authorities to keep an eye on the broker’s activities. Fortunately, it is very likely that due to the bad reputation Brazilian customers no longer had the services of CREX24 and the loss with the end of their activities here will affect few.