With a live stream discussion running on development regarding the restoration of Xeggex, one would expect to see efforts being made at the exchange's return. The recent hack, shut down and later defenses, all lead a reasonable person to an eventual restoration of the platform. History with small platforms, however, tends to be the opposite, and it's just that kind of history that is coming up now. Notably, the CEO of a previous platform that Xeggex leadership was running is now speaking up regarding the latest events, and it's not pretty. Worse, the signals being discussed predict yet another rerun of an exchange being rugged, not hacked, by its own inner members.

Haven't We Heard this Song Before?

Specifically, and according to available research, one Nayiem Willem was the CEO of Altilly Exchange at the time that Xeggex' "Karl," also known as Mike, was setting up that platform. Per Nayiem, that model was Willem as the front face, doxxed and exposed for trust-building, but it was Karl/Mike in the background running the initial funding, mechanism, dev-ops, and ultimately the wallets. Altilly, in short imploded with a hack, and Karl/Mike disappeared. That Karl/Mike is the same "Karl" who was the latest "CEO" of Xeggex.

In Willem's own words, the Xeggex played out just like what he experienced with Altilly, except in the prior model Willem was left holding the bag with multiple, upset customers:

Now, while the above is one person's statement, it is in writing, he has been identified as Nayiem Willem, and "NW" was definitely a past CEO of Altilly. The puzzling question, which is the piece that allowed Willem to identify Mike as the culprit, was why Willem went back to working with Mike again, knowing he was already involved in heisting almost a $1 million from Altilly. Apparently, good exchange platform devs are in short supply? In any case, it was repeat involvement that allowed Willem to find Mike's identity in his Github records.

Mirror, Mirror on the Wall

So, what does all the above mean for Xeggex? Probably the worst scenario possible for crypto victims involved (myself included for $40 USD; it's like a rerun of Celsius, just less painful for me this time...). All funds that were on the platform are goners and stolen. Yet again, anything valuable should be kept in wallets the owner controls completely, not exchanges.

The bigger concern is, of course, for meme coins that were supported by Xeggex. Pepecoin, for example, was already worried about a huge portion of its coin count sitting on the Xeggex Exchange versus in private wallets. Now it's at risk for a whopping price deflation event when the hacker/s eventually dump the balance for main token liquidity and cash. Of course, the Pepecoin team is looking at the silver lining; the price crash will be a great opportunity for true believers to rack up sizable balances on the cheap and push Pepecoin back up again.