Livecoin Exchange announces closure following an alleged breach in December. The trading platform declares it will close and repay users any remaining funds.
Livecoin servers were compromised last month, and the exchange lost control over its infrastructure. The attacker first modified the crypto exchange rates, inflating them to unrealistic figures.
The attack stands out because those behind the attack, set the exchange rate for bitcoin to $450,000, Ethereum to $15,000 compared to the normal $600. Then the hackers began cashing out accounts, generating profits in the process.
The exchange managed to gain some control of the hacked servers and modified the prices, but the attacker soon started cashing out user accounts with gigantic profits.
“Our service has been damaged hard technically and financially. There is no way to continue operative business in these conditions, so we take a hard decision to close the business and paying the remaining funds to clients.” the exchange noted.
A Planned Attack
The exchange admins highlighted that it was a “carefully planned attack” causing it to lose control of all of its servers.
The attack was planned when the price of Bitcoin started its dramatic upward rally after breaching the iconic $20,000 level. However, it is not clear if the doomed exchange will refund 100 percent of the user deposits or return them partially.
The exchange states that “Our service and team bear hard losses as well as our clients. In case of abuse and threats in conversation, the claim can be declined”.
Livecoin declares it will accept claims for refunds until March 17, after which no new requests will be accepted.
The exchange warns about tons of fake groups in different messengers and other channels, where people represent themselves as team members, insiders, hackers, etc. Participating in these groups is high risk because we have no groups.
“Do not send money to anyone. You don’t have to pay to get back your funds from us, the only thing you need is to send a request and follow procedure,” concludes the Exchange.