Users of the Livecoin cryptocurrency exchange, who suspect that the site has appropriated their funds in the Monero cryptocurrency, have contacted the editorial office of ForkLog magazine.
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 notified users of Monero delisting 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 blame lies entirely with the Monero developers:
“We are reimbursing the loss of client funds 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 I, like many Monero holders, have not withdrawn my funds.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 that several more users of the exchange who are confident in Livecoin fraud have applied to the editorial office. Reddit has also formed entire communities of indignant users who cannot withdraw their Monero coins.
Livecoin’s actions also provoked indignation among Russian-speaking platform users who accuse the exchange team of doing nothing at best 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.
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.
Dear clients, as you may know from the earlier news on Livecoin and at the cryptocurrency news portals, our exchange has been impacted by the vulnerability in #Monero cryptocurrency code https://t.co/eq9WE7vXk5 #Livecoin #XMR pic.twitter.com/VryNxzg48k— livecoin (@livecoin_net) August 20, 2019
“My personal opinion is that the exchange was robbed by its own employees, 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 exchange’s clients.
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 its beneficiaries 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 a Livecoin user.
Nevertheless, lawyers believe that Monero's confidentiality orientation may hinder legal proceedings. 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 in case of any violations, we cannot find out their nature or give an appropriate legal qualification. In this case, it is impossible to say for sure if we are dealing with a crime without 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. ”
