Exchange

Polish Crypto Exchange Coinroom Reportedly Shut Down Operations; Investors Lose Money

In one of the shocking incidents, a cryptocurrency exchange based in Poland, Coinroom has ceased its operations and vanished away with the funds of the investors. The report was published by a local news media house, money. Pl on 31st of May and according to the report, the cryptocurrency exchange has befooled its investors while taking away their hard-earned money.

According to the media outlet, it has received a mail from one of its readers who complained that the Coinroom has abruptly halted its working and got away with customers’ money. The cryptocurrency exchange was registered in the year 2016 and since then involved in the trading of various cryptocurrencies and digital assets. There hasn’t been anything fishy about the exchange in terms of its working procedure and processes, but then this abrupt cease in operations has come as a surprise for many of the investors. Some of the investors complain that they have lost as much as $16,000 as the exchange didn’t allow them to withdraw the funds.

Finer Details

It is not that Coinroom hasn’t warned the investors about shutting down its operation. According to the media reports, the exchange reportedly sends an email to investors asking them to withdraw their fund within a day. This was in accordance with the procedures and conditions that investors have signed with the cryptocurrency exchange. The problem, however, persisted in the form of the inability of withdrawing the funds by many investors who acted swiftly after receiving the communication from the exchange. Many investors complained that they were not able to withdraw the funds while some of the customers have been partially successful in withdrawing a part of their money. Some customer complained that when they approached the exchange office, they were not allowed to enter the premises and were treated badly by the office staff. In fact, one of the customers stated that the person at the reception forced him out saying that there was no employee of the Coinroom in the premises to whom he can meet. The receptionist then asked him to leave his details and assured that the company would contact him, but till now, nobody has called back.

Criminal Investigation

Watching close this development, the prosecutor office in the district has now come into the action.  The authorities have ordered investigation against activities of the exchange and proceedings in this regard are expected to nap the culprits who have reportedly looted the money of many investors. The regulatory authorities are also accumulating proof and trying to identify some more victims, in this case, to strengthen the overall criminal proceedings against the Coinroom.

Overarching Impact

The experts in the crypto industry are worried about this development because it could probably have long term implications for crypto adoption around the world. These kinds of instances have a detrimental effect on the psychology of the investors and can easily nullify all efforts that are directed to widespread adoption of the cryptocurrencies. As many point out that it is not a question of losing a few dollars, but on a larger scale, it affects the customer sentiments and their faith in the crypto industry and exchanges. It also points towards the failure of the regulatory agencies to strictly monitor the working of crypto exchanges and protects the interest of customers.

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Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.
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