Russian cryptocurrency exchange Livecoin has announced that it will shut down after that abrupt cessation of operations end of December 2020.
According to Livecoin’s main page, the exchange is unable to continue operations due to financial and technical damage caused by an alleged attack on its servers in late 2020. Livecoin announced the closure on January 16 on Twitter, with a link to the new domain ‘Livecoin.news’. Livecoin’s previous domain Livecoin.net is not available at the time of publication.
Livecoin said it wants to pay “the remaining money” to its customers and is asking users to contact the exchange via email to complete the verification. To start the procedure, Livecoin users must submit their usernames and registration date on the platform.
The exchange promised to provide detailed instructions in a response, noting that compensation claims will be accepted until March 17, 2021. “No new requests will be accepted after this date,” Livecoin said. The exchange has not indicated when Livecoin expects to repay its customers.
Livecoin also warned users about unofficial Livecoin chat groups that may be spreading false information and trying to defraud users. “By participating in these groups, you run a high risk, because we do [do not have any] groups, ”Livecoin wrote, claiming that its website is the only source of official information. The company also said there is an ongoing investigation.
Livecoin did not immediately respond to Cointelegraph’s request for comment.
As previously reported, Livecoin ceased operations on December 24, claiming the exchange had undergone a “carefully planned attack” that caused it to lose control of all its servers.
As part of the incident, hackers managed to take over Livecoin’s infrastructure and change the prices on the exchange to abnormally high values. As such, Livecoin reportedly traded Bitcoin (BTC) at more than $ 300,000, while the market price was about $ 24,000 at the time. Some users then suggested that Livecoin’s “hack” could be an exit scam.
As Livecoin urges its users to stay away from media outlets, its alleged customers are struggling to get their money back using Livecoin’s unofficial Telegram group. Some reported users speculated that Livecoin’s latest announcement could have been made by hackers while others complaints filed with local enforcement procedures.
Some users have refused to send their personal data to Livecoin due to privacy concerns. An alleged exchange user provided a list of data supposedly required for Livecoin’s refund process, including passport scans, residence information, high-resolution selfies, data on the first transaction on the exchange, devices used on the platform, as well as a video of a recording of the first incoming transaction.