On September 25, it was reported that Satowallet, which is a cryptocurrency wallet that operates in Nigeria, was involved in a so-called exit scam that has put $1 million of user funds in limbo. An exit scam is one in which a company takes orders but then keeps the money instead of processing the orders.

Satowallet, though, is denying that are involved in such a scam. They are blaming an unexplained data error on their servers for the loss of access.

Money withdrawal issues from Satowallet are not something new. Users began reporting these issues back in April of this year. Since then, the company has made a plethora of excuses as to why users no longer have access to their digital currency, with the server data error only the latest to surface.

At first, the company said that the withdrawal issues was only a temporary problem, caused by some technical issues. This happened just as the company was planning to launch a new digital currency exchange they were calling SatowalletEX. Then, the company claimed that the reason users were not able to access their money was because of a number of scammers using Telegram, who were able to access the company's systems during a maintenance period, during which time they stole the money.

Later, the company insisted that they had fixed the issues. But even then users could not withdraw money. The reason the company gave this time was that they were implementing know-your-customer measures. Once this was done, they announced that manual withdrawals would be possible.

Last month, however, the site went completely down. When it was finally restored, the CEO of the company discovered that all the users' money was gone and blamed it on the server data error.

Started in 2017, Satowallet claims to be based in Dubai. But the holding company that controls it, Blockchain Tech Hub, is based in Nigeria. The wallet supported in excess of 60 digital currencies, such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin.

If Satowallet is indeed perpetrating an exit scam, it would not be first cryptocurrency company to do so. Others that have perpetrated the scam include Bitconnect and OneCoin.