Russian Crypto Exchange Falls Amid Allegations of Exit Fraud – Exchanges Bitcoin News

Russian cryptocurrency exchange Livecoin has closed amid accusations that it pulled an exit scam. Customers cannot withdraw their funds and have been asked to provide extensive identification information which they fear would lead to identity theft. The exchange claims to have been hacked in December.

Crypto Livecoin Exchange Closes

Russian cryptocurrency exchange Livecoin on Saturday announced the decision to close its platform.

The exchange in December claimed he was hacked. As reported, hackers have apparently manipulated the prices of several major cryptocurrencies, including bitcoin whose price shot up to $ 500K on the platform. Since the incident, users have been trying to get their funds out of the exchange with no success, which has led many to believe that the platform operator pulled out an exit scam.

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

Our service is technically and financially damaged. There is no way to continue a going concern in these conditions, so we make a hard decision to close the business and pay clients the remaining money.

‘Suspicion’ Requirements for Money Back

To receive a refund, customers were asked to send a request with their name and registration date to an email address provided by Livecoin. Consumers have two months to file a claim, and March 17 will be the last date applications are received.

Once customers email the initial request, the exchange says they will receive “detailed instructions” on how to verify their claims. Livecoin said that payments will only be sent after customers have passed a “verification procedure”. While some users insist that Livecoin never responded to their emails, recipients of email have shared the validation procedure on social media, which has seven steps for customers to complete in order to be eligible for a refund.

The first is for consumers to provide details of their first deposit on the exchange. One user argued, “My account is from 2017, it’s impossible to know my first deposit.” Many others share the dilemma, stressing that they can no longer log into their Livecoin accounts.

Customers must also provide a “high resolution scan” of their passport or identity card, proof of address, detailed information about the device used to login to a Livecoin account, together with details of the origin of their funds. In addition, the exchange also requested a “Selfie with an open ID card” and video verification.

Russian Crypto Exchange Is Falling Amid Allegations of Exit Fraud
Livecoin user shared “verification procedure” on Twitter.

Potentially Exit and Identity Theft Cry Users

One user tweeted to Livecoin: “I got [the] email but why [are] you ask [for] too many documents like you want to open a bank account with my name. I cannot understand why you are doing this. ”

Another voiced the same concern, asking Livecoin, “Why do you collect so much repayment data?” Adding that anyone can take large loans with such data. A third chose, “they asking too much and some unnecessary information that is questionable. ” A fourth user wrote:

This information they ask for is questionable, almost any consumer will be able to recover their money with this information.

Livecoin customers on Twitter are angry and worried that they won’t be able to get their money back from the exchange. Further, adding insult to injury, Livecoin warns: “In case of abuse and threats while chatting, the claim can be rejected.” One Twitter user concluded:

They are leaving a scam … our money is gone forever and they want our identities too, to get loans with those.

Do you think this exchange is pulling an exit scam? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Twitter

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