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Coinroom exchange shuts down

Maya Mandz | Jun. 6, 2019
Coinroom exchange shuts down

June 6, 2019, | AtoZ Markets - The Polish media has reported that Coinroom exchange shuts down and is disappearing from the market, allegedly, with all its customers’ funds. Is Coinroom a scam?

Is Coinroom a scam?

Coinroom is a Poland-based exchange that enables users to trade crypto with fiat currencies like PLN and EUR. According to the crypto exchange’s review, it allows users to pay their bills using cryptocurrencies throughout Europe. The exchange offers to trade different cryptos including:

  • Bitcoin,
  • Bitcoin Cash,
  • Litecoin,
  • Dash,
  • Ethereum,
  • Monero,
  • Ethereum Classic

Coinroom allegedly allows its user to buy or sell several of the larger digital currencies: BTC, LTC, ETH, DASH, XMR, BCC, ZCOIN, PIVX.

According to the company’s description,  it was founded in 2015 and launched in April 2017. The exchange reportedly provides services in almost all countries across the world, except Russia and the USA. Coinroom says it keeps 100% of customer funds in encrypted cold storage, it unregulated and not connected to any bank.

At the moment, the company’s website is unreachable, the message on the company's front page, states, that the website is "in preparation".

Coinroom shuts down leaving its clients without money

The local news platform learned that Coinroom exchange shuts down from one of the platform customers. The user also revealed the problems related to the firm's clients' funds. 

As the media reports, the crypto exchange users received a very short email, indicating, that Coinroom exchange shuts down. The traders got one day to withdraw their funds. However, reportedly, the exchange returned only part of the funds to some customers, while many others didn’t receive any of their money back at all.

The media reports, that one Coinroom client lost 2.005 Bitcoins, which values over $16,000 USD at current prices or 60,000 zlotych. The crypto exchange reportedly ceased operations overnight and disappeared with customers’ money in April.

Łukasz Łapczyński an official of the District Prosecutor's Office in Warsaw announced that the office had initiated proceedings against Coinroom in connection with unauthorized activities providing payment services that intermediate in the exchange of cryptocurrencies.

Persons harmed by Coinroom can submit according to their jurisdiction, notifications to the District Prosecutor's Office of Warsaw about committing a crime of fraud - misappropriation of money and inform ABW in Warsaw about this crime.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.