July 9, 2019 | AtoZ Markets - The Polish cryptocurrency exchange Bitmarket has just shut down, without any prior notice.
The exchange had published late June 8:
“We regret to inform you that due to the loss of liquidity, from 08/07/2019, Bitmarket.pl/net was forced to cease its operations. We will inform you about further steps.”
Poland’s second-largest crypto exchange, as claimed, did not clarify what caused that “loss of liquidity,”
However, a Redditer said in a post that the exchange might have been following the old trend that usually takes place prior to closure, explaining that the “red flags” rose included users being forced to change their passwords without explanation, along with withdrawals being halted over unusual additional “know-your-customer procedures”.
While the exchange denied all the claims regarding it was hacked, there are still marks that indicate to such an incident.
Was crypto exchange Bitmarket scam?
The exchange users’ testified about that over the last couple of weeks, they were prompted to make several changes to their accounts, without the management explaining why was that being asked for. Users were asked to change their accounts’ passwords, while their API keys had been changed as well.
That was followed a few days after with a message that read: “The level of verification of your account on BitMarket.pl is insufficient with regard to the Act on Counteracting Money Laundering and Terrorism Funding. Please go to the ACCOUNT/VERIFICATION tab and complete the account verification process.”
The message scared the users, and therefor, they felt an immediate need to withdraw their funds from the exchange, seeing the message as a big red flag of fraud, as per some users.
What was noticed is that the exchange prevented some users from withdrawing their funds until they complied with what they were asked for of uploading an accepted identification document, ID, and personal photographs with the user holding their own ID, all in addition to a note that says that the cryptos they were purchasing on the platform were a “personal investment”.
It is worth mentioning that AtoZ Markets made fierce endeavours to reach out to Bitmarket’s management to try to understand from them directly what happened and what pushed them to sut down all of a sudden in such a way, however, the no one of them responded to our calls.