China: Crypto Exchange FCoin Can’t Pay Back $125 Million in User Funds | BTCMANAGER
Bitcoin, Blockchain & Cryptocurrency News
FCoin founder Zhang Jian has published a lengthy tell-all detailing the demise of the once-promising crypto exchange platform with the service unable to service the $125 million in crypto deposits owed to customers.
FCoin Founder Bares All
On Monday (February 17, 2020), Jian published a blog post on the FCoin website revealing that crypto exchange is unable to pay back between 7,000 to 13,000 BTC. According to the post, FCoin’s troubles is neither an exit scam or a hack but a series of data and decision errors.
An excerpt from the post reads:
“The biggest problem that FCoin currently faces is not the problem that the system cannot be restored, but the problem that the capital reserve cannot be paid by users… This is a problem that is a little too complicated to be explained in a single sentence, the time span is also large, and the two-story development lines are advancing and affecting each other at the same time, leading to the final outcome.”
Despite the shortfall in the platform’s assets, Jian revealed that he is still personally managing withdrawal requests from customers which began earlier in February. According to the FCoin chief, the mail withdrawal process will continue for the next two to three months.
Jian also stated that he is launching a new project and that profits from the venture will be used to compensate FCoin’s customers based on a remediation plan to be revealed in the future.