On August 1, 2022, one of our team members came across the Bnax exchange, where cryptocurrency prices were 5–10% higher than on regular exchanges (Binance, Coinbase, or KuCoin). We thought we could do something called "arbitrage": buy on one exchange at a lower price and simultaneously sell on another exchange at a higher price in order to generate a profit.

Before the trade, an activity check was carried out on the exchange to see whether trades were taking place there and that it had the necessary liquidity. Everything seemed fine. At that time, the bitcoin market value was USD 22,500, while it was trading at USD 24,500 on the Bnax exchange. Even so, there were up to five trades per second. It looked credible, so we decided to enter the trade.

We always try to verify new things with small amounts. We made a USD 5 purchase to test it out. We bought the MATIC cryptocurrency because of the cheap transfer fees on the Polygon blockchain that MATIC runs on. Everything arrived on the exchange, and it was even possible to sell MATIC for USDT. Everything seemed fine at that point. Out of our USD 5, we suddenly had USD 6 that we wanted to send back to our crypto wallet address. But, so far, nothing had arrived there.

And today the exchange does not even exist anymore.

Do you have similar experiences with other applications, or are you not sure about one and want some advice? Reach out to us via social media, and we'll be happy to help.

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