Caution! Be careful to use Bit-z (www.bit-z.com) [English]

Korean [https://steemit.com/bitz/@alsdnr888/bit-z-erc-20-2018-5-28]

This article is intended to inform users who are planning to use Bit-z(www.bit-z.com) to pay attention to your asset protection.

I recently saw an article that raised the suspicion that some tokens based on ERC-20 may not be in the actual exchange wallet. I regarded this subject as a big issue of the centralized exchanges and became interested in it.

[ The token was not there. A foolish mistake of exchange - token deposit error (May 24, 2018) ]

URL : https://medium.com/hexlant/%ED%95%B4%ED%94%BC%EB%8D%B0%EC%8A%A4%EB%8D%B0%EC%9D%B4-%ED%86%A0%ED%81%B0%EC%9D%80-%EA%B7%B8-%EA%B3%B3%EC%97%90-%EC%9E%88%EC%A7%80-%EC%95%8A%EC%95%98%EB%8B%A4-ba280c52d2b9?source=---------0----------------

Since the above article was written in Korean, I will briefly summarize the point. Some lax exchanges' systems are misrecognizing ERC-20 token deposits. In other words, the tokens that are not actually deposited could be mistakenly recognized as being deposited, so that they could even be traded. Thus, the balance of tokens in exchange's account could be greater than the number of actual holding tokens on the blockchain. For example, when a hacker with 100 tokens requests 1,000 tokens to be sent to those exchanges' wallet, their systems can be processed as if all of the 1,000 tokens have been deposited, since they only checked the presence or absence of TxStatus, did not figure out the detailed result of the Status Field in the transaction. The above article warned of the incompletion that exchange's system recognizes that the actual token has moved even though it has not moved.

There is a recent and hot suspicion that such a fatal affair actually occurred. The suspicion indicates that the incident even occurred at the world top-10 exchange, Bit-z. I am introducing that article so that Bit-z users can pay attention to protecting their property.

[ Trading APIS token was suspended on Bit-z. Suspicious exchange (May 28, 2018) ]

URL : https://steemit.com/kr/@alsdnr888/2wd8v2-apis-coin

Since the above article was also written in Korean, I will list the key points of that article in English.

• APIS token(www.apisplatform.io) had first listing on Bit-z, May 22. But, in just a few minutes, there was about -90% dumping compared to the price traded actively at IDEX(https://idex.market).
• As a reason to investigate the transaction of APIS, Bit-z has suspended APIS trading, deposit and and withdrawals since May 23. And Bit-z is delaying the release of the investigation results so far.
• The term of some illegal or unfair transactions was used in APIS team's comment.
• Abruptly, Bit-z has announced that it has checked for ERC-20 based tokens and will launch the 'Security Plan', while omitting the investigation results for the abnormal trading with APIS token.
• The authors of this article have been suspicious of the circumstances and analyzed the transactions in Etherscan. As a result, he found evidence that a lot of strange transactions had actually occurred and presented it in his article.
• Abnormal transactions occurred repeatedly in at least 12 addresses. And those transactions have gotten 'success' on the surface but have been marked as 'not transferable' in the actual Status Field.
  have been read through on the surface but not on the actual content. (The actual tokens in the block chain did not move)
• Based upon the above grounds, the author reasonably suspects that there are people who have played on Bit-z's poor system and taken unfair profits. In principle, something impossible happened on Bit-z.
• Finally, based on his rational inference, the author urges that the exchange has to acknowledge its fault and should try to roll back the exchange book, replenish a shortage in its book, or compensate the dumping victims for their damage.

After seeing the article introduced, I also did some additional investigations.

• Despite the dumped price, the trading volume of the first day exceeded 1,000 BTC. (I did not check the volume of Ether market.)
• Considering the final price of about $ 0.0037, the first day's trading volume is about 2~3 billion.
• The first day trading volume on Bit-z accounts for a significant portion of the actual amount of tokens in circulation, 5 billion.
• If you put these facts into the doubts mentioned above, you could come up with one idea that there may be considerable difference between the balance in the exchange and the number of actual holding tokens on the blockchain.
• GNT (Golem), which is already listed on Bit-z, also uses the same transaction status notation as APIS.
• If you put this fact into the doubts again, you might suspect that the same issue has been going on in Bit-z's GNT ballance.

Through this article, I would like to point out that the users who want to use Bit-z have to pay attention to this issue to protect their assets. I also introduced an existing article that had raised suspicions in hopes of securing the integrity of the entire cryptocurrency market. I make it clear that the purpose of this article is not to slander Bit-z but to promote the public interest. I hope that Bit-z will clarify the suspicions in a transparent manner and resolve the anxiety of users.

Addition
Bit-Z is still not allowed withdrawing with no reason
Not even considered about the case and no ann for above case