Russian exchange Livecoin shuts down after hack

Getting your Trinity Audio player ready...

Russian cryptocurrency exchange Livecoin has ceased operations, following an alleged hack suffered in December 2020.

The permanent closure comes after the exchange abruptly shut down in the wake of the attack in late December, leaving many of its users out of pocket.

According to a notice published on the Livecoin website, the financial and technical harms caused by the attack on its servers have caused irreparable damage to the platform. Its previous domain Livecoin.net is now no longer live.

https://twitter.com/livecoin_net/status/1350460750943424512?s=20

The exchange has said it intends to pay back all users affected by the hack, requesting anyone affected to complete an email verification process to access their funds. Reimbursement claims are being invited until March 17, though there is no detail at the moment as to when the exchange intends to repay the money.

Livecoin also warned users to be wary of fraudulent chat groups and scammers posing as Livecoin representatives, advising its former customers to avoid the risks of engaging with these forums.

“Participating in these groups you run a high risk, because we [do not have any] groups.”

According to details released about the hack, the attackers modified the price of BTC to $300,000, rather than the $24,000 market value at the time. However, some commentators have accused Livecoin of fabricating the hack, as an elaborate exit scam to defraud customers.

Reports are already emerging on Telegram of Livecoin users struggling to get their money back, while others have speculated the request for personal information to repay claims could be a further action from the hackers, in order to defraud users.

With confusion running high among former Livecoin users affected by the closure, the case serves as a further warning about the dangers of speculating and holding digital currency in exchange wallets.

See also: CoinGeek Live panel on The Future of Digital Asset Security & Custody