March 8, 2021

Users accused Livecoin bitcoin exchange of appropriating “stolen” Monero

Livecoin crypto exchange users who suspect that they the platform appropriated their funds in the Monero cryptocurrency.

In August 2018, the exchange reported that due to a critical bug in the Monero code that allowed it to manipulate transaction amounts, it lost more than $ 1.8 million in cryptocurrency.

A year later, in August 2019, Livecoin notifiedMonero delisting users in ten days. The exchange explained this step by the refusal of the developers of the confidential cryptocurrency to cooperate in damages.

The message also emphasizes that in this case, the platform does not take responsibility for recovering the losses of its users, and the fault lies entirely with the Monero developers:

“We carry out customer loss compensationfunds that occurred through our fault, and as you know, in the past we have done this more than once. The case of Monero does not fall into this category, because we followed the standard security protocol and made timely updates about which we were notified - therefore, in this situation, we are not at fault. ”

One of the Livecoin users who contacted ForkLog noted that the exchange message was the first official comment on the site’s website about problems with Monero.

“It is important to understand that for all this time the input / output has been closed, but the XMR was being traded! And by the time news about delisting was released, its cost was 10-20 times lower than the market. I, like many Monero holders, have not withdrawn my funds. And many sold for a penny, " He said in a comment to ForkLog.

In addition, according to him, in the future, representatives of Livecoin began to completely ignore all user questions about the current situation.

Note, the editors contacted several moreExchange users who are confident in Livecoin fraud. Reddit has also formed entire communities of indignant users who cannot withdraw their Monero coins.

Users accused Livecoin bitcoin exchange of appropriating “stolen” Monero


At Bitcointalk, users also blamed the exchange for scam and emphasized that the platform team’s accusations against the developers were “incredible impudence”.

Livecoin's actions sparked outrage amongRussian-speaking platform users who accuse the exchange team at best of inaction, and at worst, of misappropriation of funds. In addition, some customers of the site also report other issues with the exchange that are not related to Monero.

Users accused Livecoin bitcoin exchange of appropriating “stolen” Monero


In addition, users talk about the existence of a much larger number of dissatisfied customers, however, in their opinion, negative reviews delete or even force them to do so.

Users accused Livecoin bitcoin exchange of appropriating “stolen” Monero


“Personally, my opinion is that the exchange was robbed of itemployees hiding behind the Monero vulnerability. Or the management itself, taking advantage of the situation, appropriated user funds to solve its financial problems, ” - concluded one of the clients of the exchange.

ForkLog tried several times to contact Livecoin representatives, but the exchange did not respond to requests.

According to users, they do not exclude the possibility of going to court for a refund.

“The problem is that the exchange is hiding itsbeneficiaries and the legal entity to which the site belongs. The only known legal entity was found in cached pages. This company is registered in an offshore country, Belize, " - said the user Livecoin.

However, lawyers believe it is difficultlegal proceedings may Monero's confidentiality orientation. This was stated in a comment by ForkLog, lawyer of Asnis & Partners AK, deputy chairman of the Commission for the Legal Support of the Digital Economy of the Moscow branch of the Russian Bar Association, Ekaterina Ippolitova.

“The problem with anonymous cryptocurrencies is that inin case of any violations, we cannot find out their nature or give a proper legal qualification. In this case, it is impossible to say for sure whether we are dealing with a crime without the testimonies of the participants or outside evidence. Again, assessing whether the intent of the exchange was the theft of user funds or is it really a system failure reported by the site’s representatives will be very difficult due to the anonymity of Monero. ”

Recall, more about the features of the Monero cryptocurrency can be found in the ForkLog cards.