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The Fcoin exchange has found a shortage of bitcoins by $ 125 https://gagarin.news/news/uni-credit-ordered-to-pay-a-144-m-fine/ million and stopped working
Fcoin cryptocurrency exchange, which used the contradictory business model of “transaction mining”, suspended the auction and withdrawal of funds after detecting a deficit of digital assets worth up to $ 125 million.
The founder of the exchange Jian Zhang wrote that the exchange is currently not able to process users’ applications for withdrawal, since its reserves do not comply with the obligations. The gap is estimated at about 7000 – 13,000 BTC (about $ 53 – 125 million at the current rate).
Zhang emphasized that the default was caused not by hacking or fraud, but by erroneous data and managerial decisions.
The former technical director of Huobi launched a crypto-trade platform in May 2018, introducing a multiple dispute to the transaction mining model (Trans-Fee Mining). Fcoin released the FT exchange token, 51% of the coins were aimed at reimbursing users of 100% of transactions commissions. In addition, the exchange distributed 80% of the fees between users who kept bitcoins on it during the day.
Such a model, picked up by several more sites, allowed to quickly increase the volume of trading, going on this indicator to the leading position.
However, according to Zhang, the Fcoin system since mid -2018 has mistakenly charged users with large amounts of remuneration for transaction mining than followed. At the same time, the exchange until the summer of 2019 did not have a system of internal audit of assets.
Over the past year, against the backdrop of the price of exchange token, Zhang and the exchange team, the Exchange began to buy FT in the secondary market to maintain demand and quotation. The founder of Fcoin called this one of his erroneous solutions, as a result of which significant assets of the exchange and personal funds were spent.
Zhang said that he would personally manually process applications by e -mail to withdraw funds. In his opinion, this will take from 2 to 3 months, but the assets are not enough.
He assured that he compensates users with all losses using profit from new projects.
Recall that at the beginning of last year, the Canadian exchange of Quadrigacx stopped working, which has lost access to wallets with users for $ 190 million due to the death of the founder.
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