Livecoin Shuts Down after Crypto Hack

  • Livecoin has changed its domain.
  • The company has asked users to submit their account details.
  • Users are advised to ignore requests asking for money.

Russian-based cryptocurrency exchange, Livecoin, has announced a shutdown following a hack attack that left the company without control of its servers. The perpetrators are reported to have made away with 106 Bitcoins, 380 Ethereum, 567,012 XRP, 66.8 million DOGE, and 236 BCH.  An unspecified amount of funds in ERC-20 and USDT tokens was also stolen.

The hack attack that left the company without control of its servers.

The firm has additionally announced “Livecoin.news” as its new domain. Its “Livecoin.net” address seems to have been hijacked and currently bears a ransom demand.

Livecoin initially announced the hack in December after hackers artificially inflated the price of bitcoin on the platform to an astronomical $450,000 while the prevailing market price was at around $20,000.

It is not yet clear how the attack occurred. To get a refund, the management has asked its customers to submit their verification details. Livecoin users are required to send in their usernames and indicate their registration date. The information is to be submitted by March 17. The team cautions that requests made after the date won’t be honored.

Another note circulated by the team warns users about ongoing scams asking its customers to pay money in order to get their money out of the platform. Users are currently advised them to ignore such requests.

An analysis of the money trail indicates that some of the stolen funds have been converted to the DAI digital currency, via the Uniswap decentralized exchange. A significant portion of the funds has also been sent to the KuCoin exchange.

Recent Hacks

The crypto industry has a history checkered with bold hacks running into billions of dollars. While cryptocurrency exchanges continue to enhance their security features, hackers have continued to develop their intrusion vectors.

Another Hack

Hackers have continued to develop their intrusion vectors.

Another crypto exchange, EXMO, was recently hacked, and approximately $4 million in cryptocurrencies stolen. The attackers were able to transfer the loot to the Poloniex exchange where they cashed out.

According to a report by Cointelegraph, the attackers moved swiftly and withdrew the funds from the platform a few hours before the intrusion was announced. Poloniex issued a statement regarding the situation which read in part as follows:

“After we received the information from the Exmo team, we quickly identified and froze the two accounts. Unfortunately, all affected assets had been withdrawn hours before we were even contacted by Exmo.”

Funds siphoned from the company’s hot wallets are estimated to be valued at over $10.5 million.

As pertaining to the money withdrawn through Poloniex, about $1 million was converted to XRP and approximately $2.8 million cashed out in ZEC.

EXMO executives blamed the success of the attack on Poloniex’s lax KYC and AML policies. The company’s headquarters shifted from the US to Seychelles in 2019, a move that absolves it from most crypto-related KYC and AML accountabilities.

Poloniex has countered these allegations and underscored that it adheres to stringent industry verification standards.

Samuel Gush

Samuel Gush is a Technology, Entertainment, and Political News writer at Communal News.

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