Russian exchange, Livecoin terminates services after abrupt hack

TL;DR Breakdown:

  • Livecoin has decided to close its business and repay users.
  • The exchange was involved in a cyber-attack that took away their control of the platform.

Livecoin, one of the long-running digital currency exchanges in Russia, has been forced to shut down its services after several attempts to regain control of the platform’s server. The incident caused a lot of financial and technical damages for the exchange, and it has instructed users to proceed with applications for fund repayment. Sadly, Livecoin would become the first popular cryptocurrency exchange to close operations this year.

Hackers forces Livecoin to shutdown

As Cryptopolitan reported in December, an unidentified hacker(s) gained control of the exchange’s server, causing the Livecoin team to lose control of the platform. The attacker manipulated the exchange’s infrastructure and inflated the price of cryptocurrencies trading on the platform. The total money lost to the hackers wasn’t confirmed; however, it was estimated the exchange lost over $16 million based on its daily trading volume.

After several attempts to recover control of the platform, the exchange said it has decided to close the business as ”It is not possible to restore the work.” The collection of the applications for fund repayments is currently ongoing until March 17. The users have been instructed to send their identifying document to a new email address, “verification@livecoin.news.” The funds will be repaid to a user when only if the identity has been confirmed.

Meanwhile, the team will continue to run investigations on the matter to help identify the intruders. Livecoin also mentioned the increasing number of fake groups on different social media platforms. The exchange warned users to avoid joining or sending relevant information on these groups to avoid deception. 

Hackers are a threat to crypto 

Notably, the crypto industry is still in its nascent stage, where trust and asset security are very much important for mainstream adoption. Cases of scams and hacks scare people away from using cryptocurrency, therefore, threatening the growth of the cryptocurrency market. While exchanges are expected to tighten up their security measures, users can also avoid losses by using offline wallets.

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