Liqui.io, a cryptocurrency exchange based in Ukraine, has been accused of defrauding customers by delisting tokens, sometimes its top volume tokens like BAT and giving only 15 days to withdraw funds before seizing them.
For example, in its delisting announcements, Liqui.io states: “Once the withdrawal deadline has been reached withdrawals will be disabled and the asset will be fully decommissioned. From this point forward, we will be unable to process withdrawals of impacted assets. It is imperative that customers withdraw delisted tokens by the withdrawal deadline.”
Users are complaining that they have been scammed. The exchange has over 290,000 users, and it is likely that numerous users will not see the delisting announcements and end up leaving their coins on the exchange until they are confiscated. There are claims that Liqui.io is actively liquidating USD 300,000 of customer’s assets.
Further, customers assert that withdraws were halted well before the 15-day deadline, giving customers no chance at retrieving funds even if they saw the announcement in time.
It is unknown why Liqui.io does not leave the withdraws open until all customers have a chance to get their funds back. This is especially true for ERC-20 tokens like BAT which use the Ethereum wallet. The Ethereum wallet is still active for other coins on Liqui.io, and would work fine for withdrawing delisted coins if allowed.
On 28 September 2018, Liqui.io delisted CFI, TAAS, EDG, MCO, MGO, WAVES, BAT, MLN, TKN, MYST, ICN, TIME, and REQ. On 27 October 2018 Liqui.io delisted NET, XID, PTOY, NEU, ZRX, REN, AE, DNT, QRL, SNM, SRN, and STX. BAT and ZRX are tokens that were just added to Coinbase, causing a surge in popularity.
The 15-day window has already closed for these tokens, meaning any customers who left these tokens on Liqui.io have lost them.
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