Warsaw-based Coinroom crypto exchange has reportedly ceased operations and disappeared – literally overnight – with its customers’ funds.

Local financial news outlet Money.pl reported last week that it had received an email from one of its readers detailing Coinroom’s disappearing act.

On April 2nd, the crypto exchange sent an email to its customers informing them that it would be “terminating all contracts” and that they had just one day to withdraw their funds before the platform shut down.

The following day, Coinroom’s website and social media accounts went offline. Customers trying to access the exchange were met with the following notice:

Using Google Translate, it reads as follows:

Declaration of termination

contracts for the provision of services on the Coinroom Sp. z o. o

Dear User,

Acting pursuant to § 6 para. 2 of the Regulations of the Exchange and Currency Exchange Coinroom effective from February 20, 2018, we terminate the Agreement with a 1-day notice period.

In connection with the above, please ask for withdrawals from the account of all crypts owned and stored by Coinroom until April 3, 2019 for external portfolios.

After this date, the payment of the funds will be possible after sending a refund request to the email address [email protected]

In case of any doubts, please contact us at the following e-mail address: [email protected] or to the Company’s address: Coinroom Sp. z oo ul. Lindleya 16 02-013 Warsaw

Many users reported never receiving their funds despite withdrawing them from the exchange within the allotted time. Others reported only receiving partial funds.

Interestingly, the timing of Coinroom’s impromptu shutdown coincides with what was – at the time – Bitcoin’s YTD high. At the time the email was sent, Bitcoin prices had jumped nearly 15% – from $4167 to $4776. The following day, it climbed even higher, peaking at around $5303.

Total Amount of Stolen Crypto Funds Unknown

While the total amount of funds that Coinroom allegedly stole from its customers is yet to be reported, individual customers have reported losses ranging from 300 PLN ($80) to 60,000 PLN ($15,808).

One of Coinroom’s customers told the publication:

I lost 2.005 BTC. By ordering payment for a different wallet on 03/04/2019 I received a message stating that the funds transfer was ordered, but no transfer has been made to date.

Cryptocurrency and exchange data platform CryptoCompare shows the last trades on Coinroom taking place on the evening of April 2nd. A customer of the exchange posted:

What is going on, my account is closed and coinroom itself also. Is this real, what to do now.? Is all my money and cryptocurency gone with the wind, this smells like scams, OMG am i theumpteenth victim of deception in the crypto world…!!! Please say that it is not true…Someone know more?

What Happens Now?

Authorities are investigating the matter and are still in the process of determining how many users were affected by Coinroom’s actions.

Lukasz Lapczyński, a spokesperson for the District Prosecutor’s Office in Warsaw – where Coinroom is headquartered – confirmed that the office has initiated proceedings against the exchange in connection with “unauthorized activities” and providing a payment service that “intermediates in the exchange of cryptocurrencies.”

Some customers, however, have tried to take matters into their own hands. One such user, identified as Mr. Rafal, went to the exchange’s physical location after losing more than 10,000 PLN ($2636):

On the second day after sending the e-mail I went to the Coinroom headquarters. The lady at the reception did not want to let me in, she claimed that nobody was in the office. Instead, she called someone from the company [to speak] with me. I was asked to leave my details. Nobody contacted me.

There have been rumors that Coinroom’s chairman, Thomas Wiewiora, may have set up a new business entity in Estonia, however, no business registrations referencing Wiewiora have yet to be found.

BitcoinerX attempted to contact Wiewiora by email but it was returned to us as undeliverable with a “recipient domain rejected – invalid DNS” error message.

Images courtesy of Internet Archive Wayback Machine, DepositPhotos