Fcoin customers had to wake up a bitter truth today as they realized that the platform which holds their bitcoins faces evident liquidation and that their funds might have been lost in the events preceding such a fold up of business. To some of the customers who seemed to have invested(in enormous sums) all they had, they may never be able to wake up from this pitiable nightmare!
Fcoin Finally Accepts Defeat!
After a long time of struggling to keep their heads above waters, the administration of Fcoin, decided to own up and made a shocking revelation as to what problems the company was actually facing and the extent of the consequences of such predicaments.
As such, the crypto exchange’s Founder, Jian Zhang, who was also a former CTO at Huobi, took to the exchange’s official blog page to explain clearly to their customers the events that lead to the exchange going into default as well as the fact that Fcoin could not afford to refund its customers. According to Zhang,
“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. The internal problems and technical difficulties we face are the results of financial difficulties. It is expected that the scale of non-payment is between 7000-13000 BTC.”
The Actual Cause Of Fcoin Liquidation
According to the blog post, the reason for such financial incapacitation is neither an external hacking nor an internal volume run. However, it is a data error plus a decision error. The actual problem was described to be a little too complicated to be explained in a single sentence.
The official announcement also indicated that the time span is also large, and the two story development lines were advancing and affecting each other at the same time, which lead to the final outcome.
How Founder Deals With The Sitation?
Although the official announcement stated that the expected scale of non-payment was around 7,000 to 13,000 BTC, yet the founder, Jian Zhang has made a life-long commitment to pay back affected customers via email requests. He promises to make these payments from income generated from his new underway project. According to Zhang,
“I have decided to switch tracks and start again, hoping to get up again as soon as possible, and use my personal new project profits to compensate everyone for their losses. I will disclose any important progress of the new project through public channels.”
Once the new project is on track, Zhang promises to begin the long-term mail withdrawal process, which may take 1-3 years. In addition, for the other losses of FT and FMEX investors, the founder also expressed willingness to use the profit of the new project to compensate. The specific calculation method, according to the blog post, will be discussed with everyone involved at the beginning of the compensation.