Livecoin was hacked in December 2020.
Some believe the hack was put in place to allow the exchange an exit scam.
Livecoin has informed users that it will shut down permanently
Following a hack that reportedly took place in December, the Russian cryptocurrency exchange Livecoin is shutting down for good.
BeinCrypto previously reported just before Livecoin’s shutdown that Bitcoin had reached prices of up to $ 220,000 on the exchange. Likewise, Ethereum rose 600% to a price of $ 9,600.
In a January 16, 2021 post on its website, Livecoin said it was shutting down shortly.
Hack or Scam?
At the time of the hack, Livecoin announced that it had been the victim of a carefully planned attack, noting that its servers were technically infiltrated and difficult to resolve.
Indeed, the hundreds of BTC from Livecoin wallets appeared to have been moved to the wallet of a known hacker. The bad actor in question had also recently deleted the EXMO exchange .
At the time, 106 BTC, 361 ETH, and 236 BCH were stolen from the exchange.
Some users have decided to say stop. In a thread , Livecoin users said withdrawals were halted up to 24 hours before the attack. Likewise, it was suspicious that an experienced hacker had used the same wallet for two different hacks.
The management of the platform in the face of this situation seemed too unprofessional to many people on the forum. Some frustrated users believed that the hack was actually an exit scam in which the price of Bitcoin was artificially inflated, allowing officials to cash it in.
The closing message was released on Saturday, January 16, 2021, about three weeks after the initial attack.
The post on Livecoin’s website stated that the service had been „badly damaged“ and „there was no way to continue doing business under these conditions.“
The company decided to pay the remaining funds to its customers. Customers were asked to email email@example.com to verify their identity in order to recover their remaining funds.
The amount of funds remaining or how they would be distributed remains uncertain. The site, which recently moved to livecoin.news from livecoin.net, requested very specific information from users, including scans of their passports and screenshots or videos of their money transfers.
The chat on Telegram Livecoin showed that users were frustrated with the situation. Many said they had not received funds or sent information to verify their identity which was found to be invalid, or the funds were not returned. At the time, it seemed their accounts were inaccessible.