Satowallet Crypto Exchange Review: A Defunct Scam Explained

Satowallet promised easy crypto trading for African users. Instead, it vanished with millions in user funds. Today, it's a cautionary tale of one of the biggest exit scams in the cryptocurrency space.

What Was Satowallet?

Satowallet was a cryptocurrency multi-wallet and exchange platform founded in May 2017 by Samuel Benedict. It claimed to be based in Dubai, UAE, while its parent entity, Blockchain Tech Hub, maintained physical offices in Abuja, Nigeria. The platform supported over 60 digital assets including Bitcoin, Litecoin, Bitcoin Cash, and Ethereum, with features marketed as 'auto coin swap, Trading, wallet staking, Airdrops, no transactions fee, highly secured'.

Users could access Satowallet through Android, iOS, and web apps. The platform pushed itself as an African-focused solution, especially targeting Nigerian cryptocurrency enthusiasts. It claimed to offer '40% dividend for holding Satowallet Shares (SATOS)' and 'no transaction fees'-claims that later proved impossible to sustain. Despite these promises, the platform never published a detailed whitepaper or technical documentation. Its security relied on two-factor authentication, but being centralized meant it had a single point of failure.

The Timeline of the Collapse

Satowallet’s downfall began in April 2019. Users started reporting failed withdrawal attempts. At first, the company blamed 'technical issues' and promised fixes. By June 2019, Satowallet implemented mandatory KYC procedures, requiring 'several days to pass verification' according to Finance Magnates. This delay gave the platform more time to siphon funds while users waited. In September 2019, the website went completely offline. CEO Samuel Benedict posted a final update on Twitter: 'Important update for Satowallet Users by me, Samuel Benedict (CEO Satowallet Exchange)'. After that, silence. No one heard from him again.

Earlier that year, Satowallet had announced 'SatowalletEX', a supposed new exchange platform. But this was likely a distraction tactic. When the site vanished, users lost access to their funds permanently. Reports later confirmed over $1 million in crypto deposits disappeared. The data center provider OVH.com was initially blamed for 'technical issues', but this was clearly a cover story.

Evidence of an Exit Scam

Finance Magnates published a detailed report on September 25, 2019, titled 'Nigerian Crypto Wallet Satowallet Pulls off Alleged Exit Scam'. The article documented how users’ funds were drained while the platform gave shifting excuses. Cryptowisser confirmed the same day: 'Information has circulated that this exchange has pulled of an exit scam. The website is currently down and there is no way to create an account here now.'

Telegram threads from April to September 2019 showed consistent user complaints. One user wrote: 'I can’t withdraw my Bitcoin after 3 months of trying. Satowallet says it’s a 'vulnerability fix' but nothing changes.' Another said: 'They took my Ethereum and now they’re gone. What do I do?' These weren’t isolated incidents-over 1,000 users reported similar issues. The platform’s CEO never responded to public pleas. Industry analysts called this textbook exit scam behavior: withdrawal delays, fake updates, then total disappearance.

How Satowallet Compared to Competitors

When Satowallet was active, it tried to position itself against legitimate African exchanges like TrustVault and CoinJar Wallet. But the numbers don’t lie. Cryptogeek’s 2025 data shows TrustVault scored 4/5 based on 2 user reviews, while CoinJar Wallet got 1.5/5 from 2 reviews. Satowallet? A 1/5 rating from just 1 review. The platform’s 'no transaction fees' sounded great, but it couldn’t sustain operations. Competitors like Luno and Quidax operated transparently with regulatory compliance. Satowallet had none. It didn’t even register with Nigeria’s Securities and Exchange Commission or Dubai’s Virtual Assets Regulatory Authority (which didn’t exist back then but would have been required).

Unlike real exchanges, Satowallet never showed transaction history or proof of reserves. Its 'open source' claim was also false. No code was publicly available for review. This lack of transparency made it easy for scammers to exploit the platform during its 'upgrade period'-a period where they claimed 'clients’ funds were stolen'.

Lessons from the Satowallet Scam

Satowallet’s collapse teaches critical lessons for anyone using cryptocurrency services:

• Check for regulatory compliance. Legitimate exchanges register with authorities like the SEC or financial regulators. Satowallet never did.
• Look for transparency. Real platforms publish whitepapers, technical docs, and proof of reserves. Satowallet provided none.
• Never ignore user complaints. Telegram and Reddit threads filled with withdrawal issues should’ve been red flags months before the scam.
• Avoid 'too good to be true' offers. 'No fees' and '40% dividends' in crypto rarely work long-term. If it sounds unreal, it probably is.

Today, Satowallet remains on Cryptolegal.uk’s 'List of Reported Scam Companies Part 3' as a 'fraudulent company'. No assets were recovered, and no legitimate successor platform exists. This case is now used in crypto education to teach how exit scams target emerging markets.

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