Business & Finance

A Crypto Exchange Vanished and Funds Gone: Sounds Familiar?

A Polish cryptocurrency exchange, Coinroom, has unexpectedly disappeared. The website has been down since April 2019 and has taken more than $15,000 of client money with it. The site is currently down and there’s no way to contact the founders and anyone from the team. According to a Polish news agency, the firm announced in an email to its investors that the firm was closing down.

The email sent on 2nd April said that everyone had just one day to extract all their funds; otherwise, they’d have to contact customer support to do that later on. It was also revealed that the customers had signed the agreement knowing that the company has the right to drain the funds whenever they deem necessary. The company says that the users had the idea of the potential drain, so they had the right to deal with this in any way.

Even though the company had asked the users to withdraw their funds, most users have been complaining that they received only part of their funds and not the whole funds. After the one-day deadline was over, the company stopped responding to withdrawal requests from its users and closed down their website which is still non-functional to this time. The company also closed down all of its social media handles with the company’s phone number going down.

The director of the company Tomasz Zbigniew Wiewior had said that the company would resolve all the outstanding withdrawal issues by 19th April; however, the users were not able to contact Wiewior after his initial announcement. It is believed that the Polish entrepreneur has set up another company in the Baltic country of Estonia; however, it is still not clear if he has moved there or not. The Polish media reports that the exchange is yet to redeem around $15,000 of their customer’s money.

READ ALSO: Crypto Startup Wrongfully Portrayed as Scam by the Media

There has been an outrage by the customers as the customers have taken matter into their own hands and have visited the Coinroom headquarters directly. One of the victims went to the headquarters after her two emails weren’t answered. She was assured by the company that she would be contacted again; however, she hasn’t been approached still. She said:

The lady at the reception did not want to let me in and 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.

Some of the victims are now threatening to press charges and a class action lawsuit is being brought up by a group of victims to the prosecutor’s office which is already aiming to open an investigation against the company. The spokesperson for the prosecutor’s office in Warsaw, Lukasz Lapczynski, commented:

So far, several people have applied. We conduct activities aimed at identifying possible victims. At the moment, it is too early to provide information on the value of potential losses. Due to the confidentiality of the conducted proceedings, we can’t [share] inform[ation] about the implemented and planned activities, as well as the arrangements made at this stage of the proceedings.

READ ALSO: The Curious Case of a Crypto Exchange Founder’s Death, an Encrypted Laptop, Missing Wallets and a ‘Will’

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Shahzaib Zafar

Electrical Engineer, Crypto enthusiast, a tech nerd and a developer with a keen interest in blockchain, writes daily articles about bitcoin and cryptocurrencies for blockpublisher.

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