Admittedly, getting your tokens stolen can make you mad and vindictive, particularly when you blame a security institution that should protect your investments. This is what happened between Coinomi and a user.
In fact, the user’s actions were so brutal that Coinomi felt they were being ripped off and extorted by the user who claimed that Coinomi’s actions –or the lack thereof- caused him to lose $70,000 in cryptocurrencies.
As a result, the company had to publish an independent report that was written by CipherBlade –an industry leading crypto forensic outfit that’s known for their objective investigations of allegations and coverage of industry issues.
CipherBlade is the company crypto firms turn to when they have a smear campaign problem to deal with and have to clear their names of all false allegations. This has become important in the face of growing cyber smear campaigns launched by individuals and opposition companies.
The outfit is known for saving many crypto firms from bankruptcy, thanks to its investigative prowess. For instance, ShapeShift contracted the firm to counter the allegations by the Wall Street Journal that were laundering money through their platform.
This was right after the WSJ published a damning report on these issues, resulting in a huge reputation damage.
They were the same outfit that BitBuy hired when they wanted to establish their reputation as a safe and secure platform to trade on. Bottom line, this is the company that people listen to because they are credible and trustworthy.
In the case of Coinomi vs Warith Al Maawali, the former had to turn to CipherBlade in a bid to clear itself of the latter’s allegations that were not being responsible for lost funds that were kept in their wallet.
While CipherBlade has done a good job of acquitting Coinomi of all wrongdoings, the reality is that stains are hard to wash off in the crypto sector. Once you have a major publicity problem, particularly by someone who is really bent on damaging your reputation, it can be very hard to recover.
In CipherBlade’s How (Not) To React When Your Cryptocurrency Is Stolen report, they attempted to clear Coinomi of all wrongdoing. Unfortunately, this only goes so far because the report itself was sponsored by Coinomi. This, therefore, makes the report look like it’s not actually an independent one.
Even so, Al Maawali the accuser isn’t relenting. He feels that he’s been robbed of his funds and is willing to go to every length to hold Coinomi responsible for his missing $70,000 crypto tokens.
In fact, he’s gone as far as launching a thorough smear campaign on social media and even put up a Google ad condemning Coinomi. This ad is positioned right above Coinomi’s. The ads and campaigns are specifically meant to show how the company’s actions resulted in his loss of $70k in crypto assets early in the year.
Unfortunately, both parties are pointing accusing fingers at each other, without any attempt at a quick resolution. Warith has consistently published newsletters specifically targeted at Coinomi, while Coinomi has addressed his accusations in multiple editions of their publications.
According to Al Maawali, there are many red flags that point to Coinomi being a shady organization. For instance, the crypto wallet provider doesn’t have transparent organization. The company’s director is currently linked with multiple shell corporations, a situation Warith claims indicates a lack of transparency.
But, Coinomi itself has come out to counter the claims that their seeming lack of transparency is meant to actually protect the team behind the operation. The idea is to ensure that no one knows who they are, so they don’t become vulnerable to cyber and real life attacks.
Al Maawali’s claims are largely based on a security flaw that he feels the company has. His loss of funds occurred when he entered a seed phrase into the Coinomi desktop wallet to recover his wallet. Upon entry, the wallet sent a text with that seed phrase to the Google API with the intent of spellchecking it. According to him, that act resulted in the loss of his funds.
What Did The CipherBlade Report Say?
According to the report, this wasn’t the case. While the report does ask some salient questions, it was more focused on Warith’s actions and mistakes. The report basically blamed the victim for his mistakes and holds him responsible for the loss of his funds.
Their conclusion was that the funds were most likely lost because of a malware infection on his computing device. However, it also made room for the fact that a mixing service might be responsible and that the theft of the funds were premeditated.
Even so, the company has gone on to admit that some of its security processes are flawed and that it’s fixing those issues immediately.