A major Polish cryptocurrency exchange called Coinroom has reportedly closed down with very little notice to customers. Reports indicate that Coinroom customers received an email in April informing them that they had only one day to withdraw funds but apparently very few actually managed to get any money back.
Now, the Coinroom website and social media accounts no longer exist and customers have stopped receiving any correspondence, leaving many out of pocket. According to a report by the Polish economic publication Money.pl, the user agreement that customers accepted when signing up to the service notified them that a withdrawal process such as this could occur.
One user reportedly lost up to 60,000 Polish zloty (more than $15,000) on the exchange, which some believe has enacted an exit scam and purposefully stolen customer funds. During last years extended bear market, it was not uncommon for cryptocurrency exchanges to go into liquidation but with the markets now doing far better, it seems unlikely that this was the case for Coinroom.
The event brings back into light the issue of not leaving any funds stored on an exchange but for day traders it is an unfortunate necessity. There are often fees involved with moving funds on and off an exchange, which would eat into any potential profits and make the process overly complex. The best advice for traders is simply to use a long-running and trusted crypto exchange and to never leave a large stash of funds on it.
One irate customer attempted to visit the Coinroom headquarters after he was unable to withdraw funds but was told nobody is there and he can leave a message. Now, several victims have grouped together to file a lawsuit against Coinroom but if history is anything to go by, its unlikely to have much success. In the unregulated, wild-west world of cryptocurrency, it’s every man for himself.