Chivo Wallet programmer from El Salvador talks about alleged ID fraud, technology and money laundering problems-exchanges Bitcoin messages
Chivo Wallet programmer from El Salvador talks about alleged ID fraud, technology and money laundering problems-exchanges Bitcoin messages
A Chivo wallet programmer has commented on the various problems with which the flagship of El Salvador's cryptocurrency wallet was confronted in its initial phase. Shaun Overton, who claims that he was hired to help treat the problems, spoke about identity theft, money laundering problems and the technical problems he observed when working with the Chivo team.
Chivo Wallet problems deconstructed
Shaun Overton, a developer who was supposedly part of the team of Chivo Wallet, talked about the various problems with which the flagship of the cryptocurrency wallet, which was created by the government in order to make the use of Bitcoin known as a legal means of payment in the country, was confronted in the initial phase. The statements offered by Overton are part of a legal dispute between Accruvia, a software developer, and Athena Bitcoin, the company that was responsible for the development and operation of Chivo Wallet replaced by alphapoint in February
According to the local news page El Faro War overton This led to a series of ID thefts that led to fraud because the application offered a bonus of $ 30 for new registrations. Oberton explained: We never found the exact extent of the fraud, but we estimate that 10 to 20 percent of the registered users were fraudulent. el Faro estimates the fraudulent amount to more than $ 10 million, and a legal proceedings are currently underway introduced by Cristosal in November on this topic. The system also had more problems that impaired its main function and made it possible to take advantage of these defects. The wallet updated the Bitcoin price only once a minute, a mistake that made it possible for people to use other pages of price in order to benefit from the undeferred price changes. Overton stated that this caused a "money bleeding" and gave examples of users who started with $ 2,000 and managed to obtain $ 400,000. he indicated: Since the Chivo Wallet ecosystem did not compensate for the market risk, all profits of these people came from the government of El Salvador. also confirmed that the Chivo Wallet team deliberately switched off the Kyc filter when the system failed so that the app could reach its goal of 50,000 registered users and enabled people to transfer money to bank accounts without reporting it due to an error. Overton came to the conclusion that the app was "full of fraud". What do you think of the allegations of Shaun Overton the problems with which Chivo Wallet was confronted in El Salvador? Tell us in the comment area below. Bedy verification : Shutterstock, Pixabay, Wikicommons More missteps
