The Merkle

Ethereum Scam Site Warning: Storage-ETH

It appears there is another potentially malicious Ethereum wallet service which users need to be wary of right now. Storage-Eth’s website is not to be trusted, according to a report we received and our analysis. Some individuals have used this online wallet to store their Ethereum funds. However, accessing and withdrawing funds has proven to be quite difficult if not impossible.

What is the Deal With Storage-ETH?

Any online wallet service is always subject to a lot of scrutiny by users and third parties. In most cases, these wallets are perfectly legitimate and even let users export their private keys. In some cases, however, they are nefarious websites that can prove to be quite problematic for cryptocurrency users. Right now, Storage-ETH may be a website to avoid for the time being, as we received a complaint about a user being unable to access or withdraw their funds. While this seems damning, it is possible the service is currently experiencing some minor issues.

The Storage-ETH website itself looks rather professional, although it has certainly borrowed some aspects of the main Ethereum website. This may have been done on purpose or just be a random coincidence. Most malicious websites often try to mimic the real thing as closely as possible, and borrowing a website layout would certainly do the trick. Cryptocurrency users should never judge a book by its cover, as the saying goes, especially when a website claims to safeguard one’s funds for the foreseeable future.

The website itself states that most of users’ assets are stored in cold storage, which is a good thing. After all, cold storage means the funds should be safe from hacks and theft altogether. It is also possible to freeze one’s account and regain control over the funds through accessing it on another Android or iOS device. This does not necessarily mean the user can export their private key, which is rather worrisome.  Trusting online wallets is always a big risk, as one is never fully in control of one’s money.

The website displays a testimonial by Emily Wilson, who allegedly works for the “New Your Times”. This does not lend any credibility to this platform, as it shows the team is more than willing to use fake recommendations to promote their product. There is also a mention of how the company has won 17 awards and serves over 13.5 million satisfied customers. Both numbers should be ignored at all cost.

According to the complaint we received, the platform displays random wallet addresses for registered customers without providing a way for them to access their previous wallets. It is not uncommon for companies to use different wallet addresses altogether, although this should never prevent others from successfully accessing their previously generated addresses. When we tested it out for ourselves, we had access to the same wallet address at every moment.  When we did attempt to log in after logging out directly, we received a 404 Not Found error on the platform. That is never a good sign as it potentially indicates the entire website is badly coded. This is not a platform anyone would or should trust with their money.

All things considered, there are no clear signs Storage-ETH is a scam. That being said, the website has some glaring coding errors which make it difficult for people to actually trust the company with their money. The contact information is pretty spotty as well, as the site lists a UK phone number for a company allegedly registered in Finland. There are quite a few oddities with this platform and we advise users to exercise extreme caution before sending any Ether. There is a real chance this platform will run off with your money in due time.