Russian Crypto Exchange Shuts Down Amid Accusations of Exit Scam

The Russian cryptocurrency commerce Livecoin has shut down amid accusations that it has pulled an exit scam. Customers are unable to withdraw their funds and were asked to own extensive identifying recordsdata which they wretchedness would lead to identity theft. The commerce claims that it used to be hacked in December.

Livecoin Crypto Change Closes Down

The Russian cryptocurrency commerce Livecoin introduced Saturday the answer to shut down its platform.


The commerce claimed in December that it used to be hacked. As reported, hackers supposedly manipulated the prices of several valuable cryptocurrencies, in conjunction with bitcoin whose sign shot up to $500K on the platform. For the rationale that incident, users were attempting to build up their funds out of the commerce with no success, which has led many to accept as true with that the platform’s operator pulled an exit scam.

The announcement, posted on the Livecoin online page in English and Russian on Saturday, reads:

Our provider has been damaged onerous in technical and monetary diagram. There might perchance be now now not one of these thing as a ability to continue operative commercial in these stipulations, so we seize a onerous solution to shut the commercial and paying the final funds to purchasers.

‘Suspect’ Requirements to Gain Money Support

To procure a refund, prospects were asked to ship a demand with their name and registration date to an e-mail deal with equipped by Livecoin. Customers own two months to file a claim, and March 17 might perchance be the final date that requests will most definitely be accepted.

Once prospects e-mail the preliminary demand, the commerce says they’ll procure “detailed instructions” on uncover how to study their claims. Livecoin said that funds will fully be despatched after prospects pass a “verification map.” While some users recount that Livecoin by no formula spoke back to their emails, of us that got an e-mail serve own shared the verification map on social media, which has seven steps for purchasers to total in recount to qualify for a refund.

The predominant is for users to own details of their first deposit on the commerce. One user argued, “My legend is from 2017, it’s miles extraordinarily now presumably to now not know my first deposit.” Many others part the predicament, emphasizing that they’ll now now now not log into their Livecoin accounts.

In addition, prospects need to present a “high option scan” of their passport or identity card, proof of deal with, detailed recordsdata of the instrument dilapidated to log into the Livecoin legend, as wisely as details of the starting attach of their funds. Furthermore, the commerce also asked for a “Selfie with opened passport of identity card” and a video verification.

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

Customers Bawl Exit Rip-off and Presumably Identity Theft

One user tweeted to Livecoin: “I got [the] e-mail nonetheless why [are] you asking [for] too powerful documents akin to you esteem to need to initiate a checking legend with my name. I will’t impress why you are doing this.”

One other voiced the same mission, asking Livecoin, “Why attain you safe so powerful recordsdata for a refund?” in conjunction with that with such recordsdata anyone can seize out fleshy loans. A third opined, “they ask too powerful and some unnecessary recordsdata which is suspicious.” A fourth user wrote:

This recordsdata they ask for is suspect, almost about no user will most definitely be in a location to enhance their funds with this recordsdata.

Livecoin’s prospects on Twitter are offended and skittish that they might perchance now now not be in a location to build up their a refund from the commerce. Furthermore, in conjunction with insult to fracture, Livecoin’s judge warns: “In case of abuse and threats in dialog, the claim can even be declined.” One Twitter user concluded:

They exit scammed … our cash is long past with out fracture and they need our identities too, to build up loans with those.

Lift out you judge this commerce is pulling an exit scam? Allow us to know in the comments share below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Twitter

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