Russian cryptocurrency exchange Livecoin shuts down after hack

At the end of December 2020, the Russian cryptocurrency exchange Livecoin suddenly ceased operations and subsequently announced its closure.

Livecoin's homepage shows that the exchange can no longer operate due to financial and technical losses caused by an attack on its servers in late 2020. On January 16, Livecoin announced its closure on Twitter and provided a link to its new domain name "Livecoin.news." At the time of publication, Livecoin's previous domain name Livecoin.net is unavailable.

Livecoin said it is seeking to “pay the remaining funds” to customers and asked users to contact it via email to complete verification. To initiate the claim process, Livecoin users must send their username and registration date to the platform.

Livecoin promised to provide detailed instructions in its response, noting that claims will be accepted until March 17, 2021. “After this date, no new claims will be accepted,” Livecoin said. The exchange did not specify when it expected to begin reimbursing customer funds.

Livecoin also warned users that Livecoin unofficial chat groups may be spreading false information in an attempt to deceive users. "The risk of joining these groups is high because we did not create any chat groups," Livecoin wrote. Livecoin claims that its website is the only source of official information. The company also said it is investigating the false information.

Livecoin did not immediately respond to Cointelegraph’s request for comment.

As previously reported, Livecoin ceased operations on Dec. 24, with reports stating that the exchange suffered a “well-planned attack” that caused it to lose control of all its servers.

As part of the incident, hackers managed to take over the infrastructure of Livecoin and adjusted the price of the exchange to abnormally high values. According to reports, the price of Bitcoin ( BTC ) on Livecoin exceeded $300,000, while the market price of Bitcoin was about $24,000 at the time. Some users subsequently suggested that the Livecoin "hack" might be an exit scam.

While Livecoin has called on its users to stay away from media outlets, its alleged customers are working to recover their funds through Livecoin’s unofficial Telegram group. Some reports say that users speculated that Livecoin’s latest announcement may have been posted by hackers, while others have filed complaints with local law enforcement agencies.

Some users refused to send personal data to Livecoin due to privacy concerns. One alleged Livecoin user provided a list of data that Livecoin allegedly requires for the claim process, including a passport scan, residency information, a high-resolution selfie, data on the first transaction on the exchange, the devices used on the platform, and a video of the first profitable withdrawal. (Cointelegraph)