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Report: Coinroom Exchange Shuts Down All Operations and Vanishes with Customers’ Funds

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Coinroom

Coinroom, a Poland-based crypto exchange shut down its activities in April. A local Polish news platform unveiled this information noting that the exchange had allegedly vanished with its users’ funds.

The exact amount involved in the scam is not yet known. However, different customers with deposits ranging from $79 to $15,660 have come out to testify against the exchange.

The exchange was founded in 2016 and it was one of Poland’s leading crypto exchanges. It offered its clients fiat-based crypto trading services. The platform supported 16 coins including BTC, ETH, and XMR among other altcoins. On April 2 this year, Coinroom emailed its users notifying them that it had ended all contracts. The firm also requested its customers to withdraw their funds, giving them a day to do so.

Failure to withdraw funds in the given time meant a user had to contact the exchange to claim their funds. According to a report, Coinroom had drafted these intricate policies in its user agreement and all users had to accept them while opening an account.

An Exit Scam

According to the local news outlet, some users got their deposits partially, while the unfortunate ones lost all their funds. One client noted that he received a withdrawal confirmation of 2.005 BTC. However, the funds never reached his wallet. Other victims took to crypto forums to share their grief.

After a while, the firm quit responding to customers’ questions and closed its social media handles. On top of this, Coinroom took down its site. In so doing, it disappeared completely from the public domain. This move saw the crypto community become skeptic with adopters suspecting that the exchange’s ultimate goal was defrauding its customers.

The Woes of Crypto Exchanges

Last year’s crypto winter saw a lot of exchanges shut down their operations. For instance, two Indian crypto exchanges dubbed Coindelta and Coinome shut down their services. The exchanges cited the bear market and regulatory uncertainty as the reasons behind exiting the crypto space.

Coindelta noted,

The curb on the bank accounts by RBI has made us handicapped in order to provide seamless deposit and withdrawal services. There has not been any significant progress in the Supreme Court case which makes it difficult to predict when we will see the regulation.

On the other hand, Cryptopia exchange continues to face bigger problems. The firm recently shut down its services and appointed liquidators. The first audit report found that the exchange owes its creditors $2.738 million. Also, the firm owes its employees $207,000 in salaries and benefits. Topping this up is an unsecured debt of $177,000.

Do you think establishing crypto regulations can help curb exit scams? Let us know in the comments below.

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