BTSE Exposed !

Originally Syndicated on September 30, 2024 @ 11:16 am

What Happened?

BTSE, a cryptocurrency exchange known for its wide range of trading products and services, has recently been facing allegations of attempting to obscure its questionable past and suppress critical information online. While the platform promotes itself as a cutting-edge, compliant exchange, rumors of shady practices have surfaced. These concerns range from transparency issues in its operations to allegations surrounding the handling of user funds during market volatility.

In particular, BTSE’s launch of a token sale via the Liquid Network raised questions about the company’s financial stability and regulatory adherence. Critics argue that the token sale may have been an attempt to raise capital to cover gaps in liquidity, a move that sparked further suspicion.

Adding to the controversy, BTSE has reportedly made efforts to censor or downplay damaging reviews and news coverage about its past. Sources indicate that negative user feedback and articles that highlight concerns about its business practices have been quietly removed or buried, raising alarms about the company’s commitment to transparency. For traders and investors, the alleged censorship efforts only fuel doubt, as a legitimate exchange should not need to suppress information to protect its reputation.

As BTSE continues to expand its presence in the cryptocurrency market, these allegations of censorship and past misconduct have cast a shadow over its operations, urging investors to proceed with caution.

Analyzing the Fake Copyright Notice(s)

Our team collects and analyses fraudulent copyright takedown requests, legal complaints, and other efforts to remove critical information from the internet. Through our investigative reporting, we examine the prevalence and operation of an organized censorship industry, predominantly funded by criminal entities, oligarchs, and disreputable businesses or individuals. Our findings allow internet users to gain insight into these censorship schemes’ sources, methods, and underlying objectives.

List of Fake Copyright Notices for BTSE

Number of Fake DMCA Notice(s)	1
Lumen Database Notice(s)	https://lumendatabase.org/notices/44099692
Sender(s)	SynergyNet Technologies ltd
Date(s)	Aug 25, 2024
Fake Link(s) Used by Scammers	https://cointelegraph.com/news/btse-to-launch-liquid-network-powered-token-sale-in-march
Original Link(s) Targeted	https://www.fxstreet.com/amp/cryptocurrencies/news/btse-to-launch-liquid-network-powered-token-sale-in-march-202002251634

Evidence and Screenshots

How do we investigate fake DMCA notices?

To accomplish this, we utilize the OSINT Tool provided by FakeDMCA.com and the Lumen API for Researchers, courtesy of the Lumen Database.

FakeDMCA.com is the work of an independent team of research students and cybersecurity professionals, developed under Project UnCensor. Their OSINT Tool, designed to uncover and analyze takedown notices, represents a significant step forward in combating these abusive practices. It has become a valuable resource, increasingly relied upon by journalists and law enforcement agencies across the United States.

Lumen, on the other hand, is an independent research initiative dedicated to studying takedown notices and other legal demands related to online content removal. The project, which operates under the Berkman Klein Center for Internet & Society at Harvard University, plays a crucial role in tracking and understanding the broader implications of such requests.

What was BTSE trying to hide?

BTSE is a cryptocurrency exchange platform that offers a wide range of services, including spot trading, derivatives, and futures trading for digital assets. Launched in 2018, BTSE has marketed itself as a forward-thinking, technologically advanced platform designed to cater to both institutional and retail traders. The platform supports multiple fiat currencies and provides various trading products, making it a popular choice among crypto enthusiasts. BTSE also leverages advanced security features and compliance measures, presenting itself as a trusted exchange in the competitive crypto market.

One of BTSE’s key highlights is its integration with the Liquid Network, a sidechain-based settlement network for Bitcoin transactions. In 2020, BTSE conducted a token sale on the Liquid Network, positioning itself as an innovator in the blockchain space. However, despite its positive outward appearance, BTSE has faced growing scrutiny and criticism from users and industry insiders.

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Despite its claims of transparency and innovation, BTSE has been linked to several issues and controversies. These range from operational problems and complaints from users to more serious allegations that the exchange is trying to hide unfavorable information. Here are some of the adverse news, bad reviews, and allegations that BTSE seems to be suppressing:

1. Concerns About the Token Sale on the Liquid Network

BTSE’s launch of a token sale on the Liquid Network in March 2020 generated skepticism within the cryptocurrency community. While the token sale was marketed as a forward-looking move, some critics speculated that it was a way for BTSE to raise capital to cover liquidity shortages.

These allegations stemmed from concerns about the timing of the token sale, as it coincided with a volatile period in the crypto markets. Some observers questioned whether BTSE needed to boost its liquidity in response to financial instability. This raised doubts about the company’s financial health and whether the token sale was motivated by internal issues rather than external innovation. Although BTSE has remained tight-lipped about these claims, the lack of transparency regarding the token sale’s financial motivations has led to increased suspicion.

2. Withdrawal Issues and Liquidity Concerns

One of the most common complaints against BTSE involves delays in processing withdrawals. Numerous users have reported experiencing extended waiting times to access their funds, with some traders alleging that their withdrawals were withheld for days or even weeks without explanation. These delays, combined with the timing of the token sale, fueled concerns about BTSE’s liquidity. Users began speculating that the exchange might not have sufficient funds to cover withdrawal requests, particularly during times of high market volatility.

In the fast-moving world of cryptocurrency, liquidity is crucial for an exchange’s reputation. These withdrawal delays have damaged BTSE’s image, leading to negative reviews from users who expected better service from a platform that promotes itself as a top-tier exchange.

3. Lack of Transparency and Regulatory Concerns

Although BTSE operates globally, its regulatory standing has been a point of contention. Critics have raised questions about whether the exchange is fully compliant with the necessary financial regulations in the jurisdictions in which it operates. BTSE’s use of offshore jurisdictions has only added to the speculation that it may be avoiding stricter regulatory oversight. This lack of transparency about where and how BTSE is regulated has led to a lack of trust among some users.

Without clear regulatory backing, users may be at risk in the event of a dispute with the exchange, as the legal recourse in offshore jurisdictions is often limited. Additionally, the ambiguity surrounding its regulatory status has led some to question the integrity of the company’s compliance procedures, especially given the broader concerns in the crypto space about anti-money laundering (AML) and know-your-customer (KYC) regulations.

4. Censorship of Negative Reviews and Feedback

BTSE has also been accused of attempting to suppress negative feedback and complaints from its users. Some traders have alleged that their negative reviews of BTSE, posted on forums and review platforms, have been removed or hidden. This pattern of suppressing critical reviews has raised suspicions that BTSE may be more focused on maintaining its public image than addressing the underlying issues that users are experiencing.

By attempting to control the narrative and limit the spread of unfavorable information, BTSE may be deliberately trying to create an illusion of trustworthiness while ignoring the valid concerns of its user base. This tactic of censorship only serves to raise more questions about the exchange’s business practices and transparency.

5. Market Manipulation Allegations

There have also been whispers within the cryptocurrency community regarding possible market manipulation on BTSE’s platform. Some traders have claimed that during periods of high volatility, the exchange has been slow to process orders or has altered prices in a way that disadvantages retail traders. While market manipulation is difficult to prove, the frequency of such complaints has raised concerns about whether BTSE is engaging in unethical trading practices behind the scenes.

Traders who experience price slippage or unexpected order executions often feel powerless, especially on an exchange with opaque trading practices. These allegations, combined with the aforementioned withdrawal delays, further contribute to a lack of trust in BTSE.

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BTSE’s efforts to censor negative reviews, combined with the growing number of complaints from users, suggest that the exchange is hiding more than it wants the public to know. The major issues regarding withdrawal delays, concerns about liquidity, a lack of transparency in its regulatory standing, and censorship of unfavorable reviews raise serious questions about BTSE’s credibility.

Despite positioning itself as a leading platform for cryptocurrency trading, BTSE’s reported behavior points to deeper issues within the company. For traders and investors, this raises significant red flags, particularly when it comes to the platform’s ability to handle funds responsibly and operate with full transparency.

Before engaging with BTSE, potential users should conduct thorough research, looking beyond the polished marketing and seeking out independent reviews and uncensored feedback. With the growing list of complaints, it’s crucial to be aware of the risks associated with trading on an exchange like BTSE.

Only BTSE benefits from this crime.

Since the fake copyright takedown notices were designed to remove negative content for BTSE from Google, we assume BTSE or someone associated with BTSE is behind this scam. It is often a fly-by-night Online Reputation agency working on behalf of BTSE. In this case, BTSE, at best, will be an “accomplice” or an “accessory” to the crime. The specific laws may vary depending on the jurisdiction. Still, the legal principle generally holds that if you actively participate in planning, encouraging, or facilitating a crime, you can be charged with it, even if you did not personally commit it.

How do we counteract this malpractice?

Once we ascertain the involvement of BTSE (or actors working on behalf of BTSE), we will inform BTSE of our findings via Electronic Mail.

Our preliminary assessment suggests that BTSE may have engaged a third-party reputation management agency or expert, which, either independently or under direct authorization from BTSE, initiated efforts to remove adverse online content, including potentially fraudulent DMCA takedown requests. We will extend an opportunity to BTSE to provide details regarding their communications with the agency or expert, as well as the identification of the individual(s) responsible for executing these false DMCA notices.

Failure to respond in a timely manner will necessitate a reassessment of our initial assumptions. In such an event, we will be compelled to take appropriate legal action to rectify the unlawful conduct and take the following steps –

1. Inform Google about the fraud committed against them.
2. Inform the victims of the fake DMCA about their websites.
3. Inform relevant law enforcement agencies
4. File counter-notices on Google to reinstate the ‘removed’ content
5. Publish copies of the ‘removed’ content on our network of 50+ websites

By investigating the fake DMCA takedown attempts, we hope to shed light on the reputation management industry, revealing how BTSE and companies like it may use spurious copyright claims and fake legal notices to remove and obscure articles linking them to allegations of fraud, tax avoidance, corruption, and drug trafficking…

Since BTSE made such efforts to hide something online, it seems fit to ensure that this article and our original review of BTSE, including but not limited to user contributions, remain a permanent record for anyone interested in BTSE.

A case perfect for the Streisand effect…

Potential Consequences for BTSE

Under Florida Statute 831.01, the crime of Forgery is committed when a person falsifies, alters, counterfeits, or forges a document that carries “legal efficacy” with the intent to injure or defraud another person or entity.

Forging a document is considered a white-collar crime. It involves altering, changing, or modifying a document to deceive another person. It can also include passing along copies of documents that are known to be false. In many states in the US, falsifying a document is a crime punishable as a felony.

Additionally, under most laws, “fraud on the court” is where “a party has sentiently set in motion some unconscionable scheme calculated to interfere with the judicial system’s ability impartially to adjudicate a matter by improperly influencing the trier of fact or unfairly hampering the presentation of the opposing party’s claim or defense.”  Cox v. Burke, 706 So. 2d 43, 46 (Fla. 5th DCA 1998) (quoting Aoude v. Mobil Oil Corp., 892 F.2d 1115, 1118 (1st Cir. 1989)). 

Is BTSE Committing a Cyber Crime?

Yes, it seems so. BTSE used multiple approaches to remove unwanted material from review sites and Google’s search results. Thanks to protections allowing freedom of speech in the United States, there are very few legal ways to do this. BTSE could not eliminate negative reviews or search results that linked to them without a valid claim of defamation, copyright infringement, or some other clear breach of the law.

Faced with these limitations, some companies like BTSE have gone to extreme lengths to fraudulently claim copyright ownership over a negative review in the hopes of taking it down.

Fake DMCA notices have targeted articles highlighting the criminal activity of prominent people to hide their illegal behavior. These people, which include US, Russian, and Khazakstani politicians as well as members from elite circles including the mafia and those with massive financial power, are all connected – and alleged corruption ranging from child abuse to sexual harassment is exposed when exploring evidence found at these URLs. It appears there’s a disturbing level of influence being exerted here that needs further investigation before justice can be served. BTSE is certainly keeping interesting company here….

The DMCA takedown process requires that copyright owners submit a takedown notice to an ISP identifying the allegedly infringing content and declaring, under penalty of perjury, that they have a good faith belief that the content is infringing. The ISP must then promptly remove or disable access to the content. The alleged infringer can then submit a counter-notice, and if the copyright owner does not take legal action within 10 to 14 days, the ISP can restore the content.

Since these platforms are predominantly based in the U.S., the complaints are typically made under the Digital Millennium Copyright Act (DMCA), which requires online service providers and platforms to react immediately to reports or violations. Big Tech companies rarely have systems in place to assess the merit of each report. Instead, all bad actors need to do is clone a story, backdate it, and then demand the real thing be taken down.

Reputation Agency’s Modus Operandi

The fake DMCA notices we found always use the “back-dated article” technique. With this technique, the wrongful notice sender (or copier) creates a copy of a “true original” article and back-dates it, creating a “fake original” article (a copy of the true original) that, at first glance, appears to have been published before the true original.

Then, based on the claim that this backdated article is the “original,” the scammers send a DMCA to the relevant online service providers (e.g. Google), alleging that the ‘true’ original is the copied or “infringing” article and that the copied article is the “original,” requesting the takedown of the ‘true’ original article. After sending the DMCA request, the person who sent the wrong notice takes down the fake original URL, likely to make sure that the article doesn’t stay online in any way. If the takedown notice is successful, the disappearance from the internet of information is most likely to be legitimate speech.

How did BTSE purport this DMCA Fraud?

As an integral part of this scheme, the ‘reputation management’ company hired by BTSE creates a website that purports to be a ‘news’ site. This site is designed to look legitimate at a glance, but any degree of scrutiny reveals it as the charade it is.

The company copies the ‘negative’ content and posts it “on the fake ‘news’ site, attributing it to a separate author,” then gives it “a false publication date on the ‘news’ website that predated the original publication.

The reputation company then sent Google a Digital Millennium Copyright Act notice claiming the original website infringed copyright. After a cursory examination of the fake news site, Google frequently accepts the notice and delists the content.

In committing numerous offences, BTSE either premeditated actions or were unaware of the consequences. Despite hiring an agency to make Google disregard any negative information about BTSE, ignorance does not excuse this wrongdoing.

The Reputation Laundering

Rogue Reputation agencies use spurious copyright claims and fake legal notices to remove and obscure articles linking clients to allegations of tax avoidance, corruption, and drug trafficking. Most of these reputation agencies are based offshore, mainly in Russia, India, and Eastern Europe, and they do not worry about complying with US-based laws.

The content in all of the articles for which the fraudulent DMCA notices have been sent relates to allegations of criminal allegations, including corruption, child abuse, sexual harassment, human trafficking and financial fraud against businesses and individuals with ultra-high net worth.

In addition to the misuse of the DMCA takedown process, there is a notable absence of enforcement concerning perjury violations. The statutory requirement related to perjury is designed to deter copyright holders from submitting fraudulent or knowingly false takedown requests, as they may face legal consequences for making false declarations under penalty of perjury. However, to date, there have been no known instances of any individual being prosecuted for perjury in connection with the submission of false DMCA takedown notices.

This lack of enforcement has emboldened copyright holders to exploit the DMCA takedown process to suppress dissent, criticism, or other unfavorable content, without fear of legal repercussions.

Not In Good Company

Some of the people and businesses who have employed this tactic to remove legitimate content from Google illegally include a Spanish businessman-turned-cocaine-trafficker, Organised crime, an Israeli-Argentine banker accused of laundering money for Hugo Chávez’s regime, a French “responsible” mining company accused of tax evasion, child molesters and sexual predators. BTSE is in great company ….

Ironically, the manipulation tactics used to remove public-interest information from the Internet are backfiring on BTSE, which is now associated with the worst of this world.

Here are some of the specimens that share the internet space with BTSE –

Miguel Octavio Vargas Maldonado

Miguel Octavio Vargas Maldonado appears to be the former foreign affairs minister of the Dominican Republic. His name is listed next to more than 500 links to news articles, blogs, social media posts, and YouTube videos targeted for removal or de-indexing. Many of the articles refer to questions over his political fundraising practices. They include accusations that Vargas had received donations from an individual who would later be convicted of drug trafficking. Some targeted links remain active, while others return 404 errors or “file not found.”

José Antonio Gordo Valero

José Gordo joined OneCoin in 2015 and has been named in an indictment for the OneCoin scam in Argentina. The articles listed next to Gordo’s name in the documents reviewed by Rest of World include references to his role at the company. 

Diego Adolfo Marynberg

He appears to be the same Marynberg connected to funding right-wing causes, including settlement efforts in Israel. Reports also alleged that his company received preferential treatment in acquiring Argentinian bonds worth millions of dollars. More than 70 URLs appear next to Marynberg’s name in the documents, including pages from the Israeli newspapers The Times of Israel, Haaretz, and Clarin, one of Argentina’s most prominent news sites.

Majed Khalil Majzoub

Majed is an influential businessman with close ties to several governments, including the administration of Venezuelan president Nicolás Maduro. Majzoub’s name appears next to more than 180 URLs, mostly from independent outlets. Of the two URLs that pointed to articles from Germany’s Der Spiegel, one now returns an error message; the other, which appears to refer to relations between Venezuela and Colombia, directs to an unrelated story about Brexit. 

Frequently Asked Questions

What else is BTSE hiding?

Click here to visit the Google Search page for ‘BTSE’. It’s likely if you scroll down to the bottom of this Google search results, you’ll stumble upon this Legal Takedown notice (pictured below)

To make such an investigation possible, we encourage more online service providers to come forward and share copies of content removal requests with us. If you have any information on BTSE that you want to share with us, kindly email the author directly at [email protected].

All communications are strictly confidential and safeguarded under a comprehensive Whistleblower Policy, ensuring full protection and anonymity for individuals who provide information.

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References and Citations Used

Over thirty thousand DMCA notices reveal an organized attempt to abuse copyright law.

Reputation Management, or Internet Conspiracy

Exposed documents reveal how the powerful cleaned up their digital past using a reputation laundering firm.

Companies Use Fake Websites and Backdated Articles to Censor Google’s Search Results.

Bad Reviews: How Companies Are Using Fake Websites to Censor Content

How fake copyright complaints are muzzling journalists

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Many thanks to FakeDMCA.com and Lumen for providing access to their database.

Photos and Illustrations provided by DALL-E 3 – “a representation of BTSE censoring the internet and committing cyber crimes.”

• Our investigative report on BTSE’s efforts to suppress online speech is significant, as it raises serious concerns about its integrity. The findings suggest that BTSE has engaged in questionable practices, including potential perjury, impersonation, and fraud, in a misguided attempt to manage or salvage its reputation.
• We intend to file a counternotice to reinstate the removed article(s). While this particular instance is relatively straightforward, it is important to note that, in other cases, the overwhelming volume of automated DMCA takedown notices can significantly hinder the ability of affected parties to respond—especially for those not large media organizations.
• You need an account with fakeDMCA.com and Lumen to access the research data. However, accounts are not widely available since these non-profit organisations manage large databases that could be susceptible to misuse. Nevertheless, they do offer access to non-profits and researchers.
• It’s unclear why U.S. authorities have yet to act against these rogue reputation agencies, whose business model seems rooted in fraudulent practices.
• We’ve reached out to BTSE for a comment or rebuttal regarding this investigation. It will strongly suggest they were behind the takedown attempt if they remain silent.

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About the Author

The author is affiliated with Harvard University and serves as a researcher at both Lumen and FakeDMCA.com. In his personal capacity, he and his team have been actively investigating and reporting on organized crime related to fraudulent copyright takedown schemes. Additionally, his team provides advisory services to major law firms and is frequently consulted on matters pertaining to intellectual property law. He can be reached at [email protected] directly.