Polish Crypto Exchange Ceased Operation Overnight and Fled with Customers’ Fund

By Katelyn James | June 5, 2019
Polish Crypto Exchange Ceased Operation Overnight and Fled with Customers’ Fund

Coinroom – a Poland-based crypto exchange platform – has reportedly ceased its businesses and fled, along with all the money of its investors.

According to local newspaper money.pl, on May 31st, a reader has sent an email revealing that Coinroom – which was legally registered back in 2016 – has reportedly shut down all of its operations overnight and ran away, along with its customers’ funds in April 2019. The highest amount in one of Coinroom’s customers could reach 60,000 zloty (around $15,790).

Prior to the sudden shutdown, Coinroom has issued an email to its clients, providing details about contract terminations. Coinroom only allowed a 1-day period for its customers – a time frame in line with terms in the initial contract signed by the users – to move all the assets out of their accounts. However, numerous customers only managed to retrieve a small sum of their funds, while many others failed to receive even a coin back.

One Coinroom client claimed that the exchange owed him 2.005 bitcoins (BTC) (nearly $15,000). One other customer revealed that “on the second day after sending the e-mail I went to the Coinroom headquarters. The lady at the reception did not want to let me in, she claimed that nobody was in the office. Instead, she called someone from the company. I was asked to leave my details. Nobody contacted me.”

Łukasz Łapczyński – spokesperson of the Warsaw District Prosecutor’s Office – disclosed that the office has begun pressing charges against Coinroom, for offering unauthorized payment services, related to cryptocurrency trading activities. The office is also determining other customers of the exchange that suffered financial damage from the incident.

Last month, RepuX and JoyToken – 2 blockchain-based tech startups – have been reportedly accused of performing initial coin offering (ICO) exit scams to con investors. The 2 blockchain startups have showcased a number of falsified ICO advertisement, and have successfully stolen $4.7 million and $3.3 million respectively from investors.

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