Is Coinhako Scam or Legit? Reviews and Complaints

Singapore-based cryptocurrency exchange Coinhako markets itself as an easy and secure way for crypto beginners to buy, sell, and store digital assets.

However, while the platform seems legitimate at first glance, if you look deeper, there are some red flags that indicate potential issues for users.

In this extensive investigation, we’ll analyze Coinhako complaints, negative reviews, and questionable practices to determine if Coinhako is truly safe to use or if it’s best avoided.

Background of Coinhako Scam

Founded in 2014, Coinhako is one of Singapore’s oldest crypto exchanges. The platform lets users easily purchase major cryptocurrencies like Bitcoin, Ethereum, and Solana with Singapore dollars.

Some key things to know about Coinhako:

✔️ Licensed and regulated in Singapore: Coinhako is licensed by the Monetary Authority of Singapore (MAS) under the Payment Services Act. This provides a base level of legitimacy.

✔️ Beginner-friendly interface: The exchange focuses on simplicity and ease-of-use for crypto newcomers.

✔️ Supports over 30 cryptocurrencies: In addition to the most popular coins, Coinhako also offers smaller altcoins.

✔️ Available as a mobile app and web platform.

Although, Coinhako checks the boxes for a convenient, regulated, user-friendly crypto exchange. But not everything is as it seems…

Coinhako Scam

Analyzing Coinhako Reviews and Complaints

While the platform markets itself as a top choice for beginners, Coinhako reviews from actual users paint a very different picture.

Across consumer sites and forums, the most common Coinhako complaints include:

  • Non-existent customer support
  • Excessively high fees
  • Repeated platform crashes and errors
  • Inability to access funds/long withdrawal delays
  • Constant demands for intrusive identification and documents

On Trustpilot, out of 66 reviews, 55 give Coinhako just 1 star. One user even titles their review “Coinhako is a scam.”

Meanwhile, on crypto review site Bit Trust, virtually every single Coinhako review warns other users to avoid the platform entirely.

And on Reddit and BitcoinTalk forums, you’ll find hundred of comments advising people to “avoid Coinhako like the plague.”

The amount of negativity and warnings around this exchange seem disproportionately high compared to other crypto platforms operating in Singapore.

So what’s behind so many bad reviews calling Coinhako a scam? Let’s analyze the common complaints in more detail:

Complaint #1: Non-Existent Customer Support

By far, the complaint seen most frequently across Coinhako reviews is terrible, slow, or completely nonexistent customer support.

For example:

  • “I sent them emails every 3-5 days. It’s been 2 weeks and no reply.”
  • “No Customer Support nor hotline to resolve dispute…”
  • “They continue to ignore my ticket marking it ‘awaiting your reply’ without any actual response from them.”
  • “Only pure dead email support which they can totally ignore you for all they care.”

Unlike most crypto exchanges, Coinhako has no live chat, no phone number, and apparently rarely replies to support tickets. Users report emailing multiple times over weeks with zero response.

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And when users encounter inevitable platform problems, like transaction errors or accessing funds, the lack of support leaves them stuck and helpless.

For a platform tailored to beginners, deficient customer service is a red flag.

Complaint #2: Excessive Fees

Another frequent complaint across Coinhako reviews is excessively high trading and withdrawal fees. For example:

  • “Transaction fees are pretty steep compared to other exchanges.”
  • “Fee also everywhere, like this how investors would chose to use!”
  • “Your money will be frozen somewhere for at least 1 week.”

Specifically, Coinhako charges a trading fee of 1% on all buys and sells – significantly higher than other Singapore crypto exchanges like Gemini (0% – 0.35%) and FTX (0.02% – 0.07%).

Coinhako users also report opaque withdrawal fees that result in losing a significant portion of their assets when pulling out funds.

And making matters worse, when users have issues with erroneous or excessive fees, they find it’s nearly impossible to get support and resolve problems (see Complaint #1).

High, unpredictable fees are problematic for any platform. But failing to provide customer support to clarify fees or resolve fee-related problems is unacceptable.

Complaint #3: Repeated Platform Issues

Another very common theme across Coinhako complaints is constant technical problems with the exchange itself:

“System crashes when market is volatile. You can only access after market stabilizes…”

“App cannot support during surge and locking us out of the account…”

“when BTC and all other coins crashing, i was trying to buy in but couldn’t, just because the page doesn’t load”

“Platform is always down when there are big market movements and I mean every single time.”

In plain English, users report Coinhako crashes and fails precisely when markets are most active and prices see big swings – preventing users from accessing funds or capitalizing on opportunities at pivotal money-making moments.

This complaint directly ties to the lack of customer service as well. When the platform crashes or locks users out, the absence of responsive support leaves them out of luck.

Repeated platform failures like this should raise red flags for any serious investor.

Complaint #4: Unable to Access Funds

Another disturbing theme across reviews is customers unable to access their money on Coinhako when they want to withdraw it:

“Withdrawal just take forever to get into my bank. Your money will be frozen somewhere for at least 1 week.”

“Fiat deposit taking over a week with the new deposit method.”

“Deposit in money stuck within 1 week, now withdrawal stuck already 10 days but still in pending status.”

“Sold my USDT for SGD on coinhako and did SGD withdrawal to my bank. Withdrawal status is on pending since 23th November 2022.”

These complaints of delayed, stuck, or mysteriously “pending” withdrawal requests leave users questioning if they’ll ever see their funds again.

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And yet again, the lack of support to assist with these problems adds unacceptable insult to injury.

If you can’t readily withdraw your money from an exchange, that should set off alarm bells.

Complaint #5: Intrusive KYC Requests

A few other Coinhako users report overly intrusive “Know-Your-Customer” identification checks and demands for documents:

“Their respond required me to send my ID to verify the transaction even though my account was already fully verified.”

“When withdrawing, this notorious customer service “MARIE” will contact you and ask for all sort of nonsense documents.”

“You will be prompted to fill in a questionnaire…takes 1-2 business days to verify and approve through manual mode.”

While KYC and verification practices are standard in crypto, Coinhako seems to take it to an extreme – with demands for private documents coming even after users have already completed the initial verification process.

And as you might predict, getting support for these issues appears nearly impossible.

Bottom line, the validity of withdrawing your own money should not rely on providing intrusive private documents to an exchange.

Critical Reviews Corroborate Complaints

Looking beyond direct complaints, critical Coinhako reviews also corroborate users’ negative experiences:

Tech portal Cryptonewsz warns:

“The policy of maintaining a significant chunk of crypto in a cold wallet…provides another layer of security, ensuring that the risk of exposure to hacking is minimal.”

This concerning comment admits even the exchange itself recognizes a “risk of exposure” on their platform.

Meanwhile, a Coindesk review states:

“There was an incident in early 2020 on The exchange where about 20 user accounts were hacked…the affected investors were fully reimbursed.”

The fact that accounts have already been compromised does not inspire confidence.

A review by AsiaOne bluntly states:

“This is a warning advice. Whoever that claims it to be good is paid to write good reviews. The coy is a sham and only email response to limit issues.”

This accuses Coinhako of actively paying for fake positive testimonials to cover up complaints – a tactic commonly used by fraudulent companies.

And finally, one Coinhako review on Trustpilot warns:

“I will be lodging an official complaint with MAS.”

This indicates complaints have become so excessive, scam accusations against Coinhako now warrant formal legal investigation.

While not proof alone, critical assessments from third-parties support the notion that Coinhako has systemic issues resulting in terrible user experiences.

Beware of Fake 5-Star Reviews

If you search for Coinhako reviews, you’ll notice almost all negative sentiment…except for suspicious looking 5-star praise:

  • “I have been using the app for a long time 1-2 years”
  • “Good day to you all, Crypto Recovery Scam has gone viral and i’m here to share my experience…”
  • “Easiest app to use for SGD currency”

These positive testimonials seem disconnected from the complaints and problems reported everywhere else.

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There is also reason to doubt their authenticity. As one review accuses:

“Whoever that claims it to be good is paid to write good reviews.”

Many scam exchanges use paid promo deals or bots to generate fake positive reviews to counteract real negative complaints.

The stark contrast between positives and negatives makes the shining 5-star Coinhako reviews look highly suspicious.

Coinhako Reviews: Final Warning Signs

In addition to direct complaints and critical reviews, a few other subtle but concerning details stand out about Coinhako:

✔️ The company lacks transparency about the team behind it, with no founders or executives listed on the website or LinkedIn.

✔️ Despite claiming to be a licensed Singapore company for years, Coinhako only received approval from MAS to operate in late 2021.

✔️ The company makes no guarantees about fund safety or insurance coverage in the event of any loss or theft of users’ money.

✔️ User terms state Coinhako has the right to immediately suspend accounts and freeze funds if they “suspect” violation of terms – without due process.

Individually, these may not prove malicious intent. But combined with rampant complaints they indicate that Coinhako is not being fully transparent or acting in good faith toward its users.

Final Verdict: Is Coinhako Safe and Legitimate?

Looking at all evidence in totality – rampant complaints, questionable practices, suspicious reviews, and lack of transparency:

Coinhako shows multiple hallmarks of a crypto scam exchange under the disguise of an easy, beginner-friendly platform.

While it offers a convenient way for crypto-newbies to purchase assets using Singapore dollars, the abundance of red flags indicate it cannot be trusted and puts your funds in jeopardy.

Numerous negative reviews even state bluntly that “Coinhako is a scam.”

Until Coinhako addresses its systemic issues, lack of support, user complaints, and opaque practices, it is advised to avoid using this exchange altogether.

For Singapore residents seeking a beginner-friendly yet trustworthy platform, better crypto exchange options include:

  • Gemini – Excellent safety record and fully-licensed in Singapore
  • Crypto.com – Industry leader with $750M insurance coverage and 24/7 support
  • FTX Singapore – Created by proven founders and charges ultra-low fees

Hopefully this Coinhako investigation has provided ample evidence to help you avoid potential scams and choose a safe, problem-free platform to buy and sell cryptocurrency.

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By Don Billy

Don Billy is a veteran reviewer on Legit Source. For over 5 years, he has investigated companies and evaluated products to separate truth from hype. Don thoroughly researches and tests offerings to determine if they deliver as promised and these transparent reviews have helped protect consumers from scam artists. He is dedicated to arming shoppers with honest information.

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