Read the success stories of crypto entrepreneurs.

Discussions are fun when we are part of a community.
Login Free Registration

Get 10 AltcoinN Points just by registering on this forums.


After Exit Scam Rumors, FCoin To Reopen; Plans to Payback Users $130M ‘Lost’ Bitcoin

SourceOriginal
#1
Bitcoin Exchange Guide

 
Cryptocurrency News
After Exit Scam Rumors, FCoin To Reopen; Plans to Payback Users $130M ‘Lost’ Bitcoin
By Edwin Munyui- February 28, 2020
After Exit Scam Rumors, FCoin To Reopen; Plans to Payback Users $130M 'Lost' Bitcoin
FCoin, a China based crypto exchange, has announced that it is making a comeback from its current insolvent state. The exchange found itself in trouble when an alleged $130 million worth of BTC was lost within its ecosystem.
Following its ‘near collapse’, the firm had declared insolvency but promised to reimburse users their funds. FCoin’s community has since established a representative led ‘interim committee’ set to take over FMex and FCoin websites from the firm’s existing team. In addition, the community is in the process of drafting a compensation plan which might be a mix of company equity and the rights of creditors. FCoin is hopeful once they are done with the compensation plan, the exchange will be run by its community.


Crypto Europe
@CryptoEurope3
FCoin and FMex restart work officially announcedhttps://fcoin.zendesk.com/hc/zh-cn/articles/360044130453-FCoin%E5%8F%8AFMex%E9%87%8D%E5%90%AF%E5%B7%A5%E4%BD%9C%E6%AD%A3%E5%BC%8F%E5%BC%80%E5%A7%8B%E5%85%AC%E5%91%8A …

View image on Twitter
11
10:54 AM - Feb 27, 2020
Twitter Ads info and privacy
See Crypto Europe's other Tweets
FCoin’s $130 Million Loss
This crypto exchange has been termed as an ‘exit scam’ by some stakeholders in the industry. Zhang Jian, FCoin’s co-founder, however defended the company’s $130 million loss in a letter dubbed ‘FCoin Truth’ to its exchange users. He attributed a big part of this loss to ‘financial difficulties’ and ‘poor auditing’.

According to FCoin stakeholders, the platform’s reputation of ‘community run’ was compromised when some players acted to manipulate its native token price. Some crypto analysts on the other hand said that FCoin’s ‘tran-fee mining’ meant to compensate its users with native tokens was questionable.


 
AnChain.AI, a blockchain research firm, on its part noted that FCoin’s attribution to technical difficulties may have been part of the ‘exit plan’ all along. This sentiment is backed by a chain of transactions from FCoin revealing some irregularities in BTC fund transfers and withdrawals.

The FCoin ‘Compensation Plan’ Feasibility
According to an estimation by FCoin, its insolvency value is between 7,000 to 13,000 Bitcoins; this is roughly $61 to $115 million as per today’s prevailing prices. The big question is therefore how the exchange will manage to return all its users funds?

Similar cases in the crypto industry are currently in court while some scammers have already been handed a prison term. Zhang seems to be avoiding this route, pledging his own funds, but only time will tell whether a reputational damage can be reversed in this very new, unfamiliar and volatile market.

Previous Review
BitStamp Adds Full Native Support for SegWit Bitcoin Transfers with Bech32 Addresses
Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

 
Latest Crypto News
Crypto Exchange, TradeSatoshi, Shuts Down Operations Raising Questions Of An Exit Scam
Crypto Exchange, TradeSatoshi, Shuts Down Operations Raising Questions Of An Exit...
February 22, 2020
Upbit Blames South Korea’s Taxation and KYC Hurdles in Foreigners’ Frozen Funds Saga
Upbit Blames South Korea’s Taxation and KYC Hurdles in Foreigners’ Frozen...
February 21, 2020
UK’s BTC-Only Exchange, Coinfloor, Simplifies Bitcoin Buying Service For Newbies
UK’s BTC-Only Exchange, Coinfloor, Simplifies Bitcoin Buying Service For Newbies
February 20, 2020

 
NO COMMENTS
LEAVE A REPLY
Comment:
Name:*
Email:*
Website:
S

ave my name, email, and website in this browser for the next time I comment.

Bitcoin Exchange Guide
ABOUT B.E.G.
Bitcoin Exchange Guide is a hyperactive hybrid of heavy-handed cryptocurrency content curation creators from christened community contributors who focus on delivering today's bitcoin news, cryptoasset user guides and latest blockchain updates.
Reply