CoinPayments to shut down in US — 5 days left to withdraw funds

Global crypto payments gateway, CoinPayments.net is ceasing operations in the United States soon and has advised users to withdraw their assets before July 19th, 2022.

The short notice given by the exchange via a private email left some customers suspecting if this was an "exit scam" or caused by another mysterious incident.

Crypto platform shut down: 5 days left to take out funds

CoinPayments.net, a worldwide payment gateway supporting over 120 types of crypto coins began emailing customers sometime last week announcing its shut down across the U.S.

The company advises users to withdraw their virtual assets to an external wallet no later than July 19th.

"With effect from July 19, 2022, accounts belonging to U.S. users will no longer be accessible," reads the announcement:

The crypto operation has blamed recent Anti-Money Laundering (AML) regulations and market changes for the sudden closure of their business operations across the U.S.

"Unfortunately, due to recent AML regulations and changes, we are no longer able to provide services to the United States," a CoinPayments spokesperson told BleepingComputer.

"Hence the [U.S.-based accounts have] been flagged and will be closed on the date that is mentioned in the email that they have recently received."

U.S. is also not the only country barred by the platform. Rather the U.S. has now joined the company's existing list of some 34 nations (including countries sanctioned by the U.S. Treasury's OFAC) where CoinPayments and its parent company UAB Star Ventures do not trade.

Short notice prompts 'exit scam' concerns among customers

The discreet delivery of the closure announcement via email and the rather short notice given to customers for withdrawing their digital assets left many concerned, with a few suspecting if this was a crypto grab or an exit scam.

Is anyone else having trouble taking funds out of @CoinPaymentsNET? It's been a nightmare and zero customer support.

— Richard Wyche (@RichardWyche) July 7, 2022

Definitely could be a sort of exit scam, though just for a certain number of clients

— Ian Costa (@Ian_Costa18) July 12, 2022

@MoneyMetals - your crypto payment provider is pulling out of the US Market. @CoinPaymentsNET . I have been buying from you with $Dash sometimes. BitPay doesn't take Dash. Do you have plans to support crypto in place moving forward?

— DocAgnew (@agnewtpickens) July 10, 2022

An exit scam refers to an unscrupulous practice by a legitimate or criminal business operation pretending to have lost access to any funds or goods due to being hacked, seized by the government, or slapped with new regulations or other problems. They then tell their clients that they have no way of reimbursing them or providing their paid-for services, while quietly sneaking away with the stolen money or goods.

BleepingComputer has previously repeatedly reported on exit scams including those pulled by crypto platform ARBIX, dark web market Empire, and the operators of Jokeroo ransomware that caught users by surprise.

CoinPayments, on the other hand, has given at least some time advance notice to customers and urged them to withdraw their assets, making this seem unlikely to be an exit scam at this time.

Unfortunately, though, the company's public response to every tweet from an anxious customer has been generic and directs them to submit a (private) support ticket. Some called the company out for not addressing "on social media that they are closing [people's] accounts" and taking a private notification approach to the matter.

It remains yet to be seen how the development unfolds over the next few days but the clock is ticking and CoinPayments customers should cash out their digital assets as soon as possible.