Russian Crypto Exchange Shuts Down Amid Accusations of Exit Scam

The Russian cryptocurrency exchange Livecoin has actually closed down amid accusations that it has actually pulled an exit scam. Customers are not able to withdraw their funds and have actually been asked to offer comprehensive determining info which they fear would result in identity theft. The exchange declares that it was hacked in December.

Livecoin Crypto Exchange Closes Down

The Russian cryptocurrency exchange Livecoin revealed Saturday the choice to shut down its platform.

The exchange declared in December that it was hacked. As news.Bitscoins.internet reported, hackers allegedly controlled the rates of numerous significant cryptocurrencies, consisting of bitcoin whose cost soared to $500K on the platform. Since the event, users have actually been attempting to get their funds out of the exchange without any success, which has actually led numerous to think that the platform’s operator pulled an exit scam.

The statement, published on the Livecoin site in English and Russian on Saturday, checks out:

Our service has actually been harmed hard in technical and monetary method. There is no chance to continue personnel organization in these conditions, so we take a tough choice to close business and paying the staying funds to customers.

‘Suspect’ Requirements to Get Money Back

To get a refund, consumers have actually been asked to send out a demand with their name and registration date to an e-mail address offered by Livecoin. Users have 2 months to sue, and March 17 will be the last date that demands will be accepted.

Once consumers email the preliminary demand, the exchange states they will get “comprehensive directions” on how to confirm their claims. Livecoin specified that payments will just be sent out after consumers pass a “confirmation treatment.” While some users firmly insist that Livecoin never ever responded to their e-mails, those who got an e-mail back have actually shared the confirmation treatment on social networks, which has 7 actions for consumers to finish in order to get approved for a refund.

The initially is for users to offer information of their very first deposit on the exchange. One user argued, “My account is from 2017, it is difficult to understand my very first deposit.” Many others share the issue, highlighting that they can no longer log into their Livecoin accounts.

In addition, consumers should offer a “high resolution scan” of their passport or identity card, evidence of address, detailed info of the gadget utilized to log into the Livecoin account, along with information of the origin of their funds. Furthermore, the exchange also requested a “Selfie with opened passport of identity card” and a video confirmation.

Russian Crypto Exchange Shuts Down Amid Accusations of Exit Scam — Livecoin’s “confirmation treatment” shared by a user on Twitter.

Users Cry Exit Scam and Possibly Identity Theft

One user tweeted to Livecoin: “I got [the] e-mail however why [are] you asking [for] excessive files like you wish to open a savings account with my name. I can’t comprehend why you are doing this.”

Another voiced the very same issue, asking Livecoin, “Why do you gather a lot information for a refund?” including that with such information anybody can secure big loans. A 3rd suggested, “they ask excessive and some unneeded details which is suspicious.” A 4th user composed:

This info they request for is suspect, practically no user will have the ability to recuperate their funds with this info.

if (!window.GrowJs) { (function () { var s = document.createElement(‘script’); s.async = real; s.type=”text/javascript”; s.src=”https://bitcoinads.growadvertising.com/adserve/app”; var n = document.getElementsByTagName(“script”)[0]; n.parentNode.insertBefore(s, n); }()); } var GrowJs = GrowJs || {}; GrowJs.ads = GrowJs.ads || []; GrowJs.ads.push({ node: document.currentScript.parentElement, handler: function (node) { var banner = GrowJs.createBanner(node, 31, [300, 250], null, []); GrowJs.showBanner(banner.index); } });

Livecoin’s consumers on Twitter are mad and concerned that they will not have the ability to get their refund from the exchange. Furthermore, rubbing salt in the wound, Livecoin’s observe cautions: “In case of abuse and hazards in discussion, the claim can be decreased.” One Twitter user concluded: