The Russian cryptocurrency exchange Livecoin has closed on charges that it committed an exit fraud. Customers are unable to withdraw their funds and have been asked to provide full identifying information that they fear would lead to identity theft. The exchange claims it was hacked in December.
Livecoin Crypto Exchange will be closed
Russian cryptocurrency exchange Livecoin announced on Saturday the decision to close its platform.
The exchange claimed in December that it was hacked. As reported by news.Bitcoin.com, hackers allegedly manipulated the prices of several major cryptocurrencies, including Bitcoin, which was priced up to $ 500,000 on the platform. Since the incident, users have tried unsuccessfully to get their money out of the exchange, leading many to believe that the operator of the platform committed an exit fraud.
The announcement, published on Saturday in English and Russian on the Livecoin website, reads:
Our service has been badly damaged technically and financially. Under these conditions there is no way to continue business operations. Hence, we are making a tough decision to close the deal and pay the remaining funds to customers.
“Suspicious” requests for money back
In order to receive a refund, customers were asked to send a request with their name and registration date to an email address provided by Livecoin. Users have two months to file a claim, and March 17th is the last date requests are accepted.
As soon as customers receive the first request by email, the exchange receives “detailed instructions” on how to review their claims. Livecoin stated that payments will only be sent after customers have passed a “verification process”. While some users insist that Livecoin never replied to their emails, those who got an email back shared the social media verification process, which includes seven steps customers need to follow in order to sign up for a Refund qualify.
The first is for users to provide details about their first deposit on the exchange. One user argued, “My account is as of 2017, it is impossible to know my first deposit.” Many others share the dilemma and stress that they can no longer log into their Livecoin accounts.
In addition, customers must submit a “high-resolution scan” of their passport or identity card, proof of address, detailed information on the device they used to log into the Livecoin account, and details of the origin of their money. In addition, the exchange called for a “selfie with an open ID card” and a video review.
Livecoin’s “Verification Process” shared by a user on Twitter.
Users cry exit scam and possibly identity theft
One user tweeted on Livecoin: “I have [the] Email but why [are] You ask [for] Too many documents like you would like to open a bank account in my name. I can’t understand why you’re doing this. “
Another expressed the same concern, asking Livecoin, “Why are you collecting so much data for a refund?” With such data, anyone can get large loans. A third said, “You are asking too much and some unnecessary information that is suspicious.” A fourth user wrote:
This information they are asking for is suspicious. Virtually no user can get their money back with this information.
Livecoin customers on Twitter are angry and concerned that they will not be able to get their money back from the exchange. In addition, Livecoin warns of an insult to the violation: “In the event of abuse and threats in the conversation, the claim can be rejected.” A Twitter user came to the conclusion:
They leave cheated … our money is gone forever and they also want our identities in order to get credit with them.
Do you think this exchange is causing an exit fraud? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Twitter
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