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Troubled FCoin Goes Bust Leaving Up to USD 116 Million in Limbo 101
Source: iStock/Lisa-Blue

Troubled Chinese crypto exchange FCoin expects that “the scale of non-payment is between 7000-13000 BTC” (USD 62.5 million – USD 116 million) after it run into troubles last week.

As reported, on February 12, the exchange stated that they lost “contact of key personnel in the team” and the company suffered “severe damage to some systems and data.”

Today, the company explained on their official channels on Reddit and Twitter that “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 result of financial difficulties.”

The statement was signed by Zhang Jian, the founder of the exchange and the former CEO of Huobi exchange.

As reported, the exchange opened withdrawals and started processing them last week.

Jian said today:

  • “I expect the current mail withdrawal process to take 2-3 months.”
  • “Since the current assets are not enough to pay the users, I will deal with the principle of allowing as many users to withdraw as possible to minimize the number of people affected.”

“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,” the founder said. “Once the new project is on track, I will begin the long-term mail withdrawal process, which may take 1-3 years. In addition, for the other losses of FT and FMEX investors, I am also willing to use the profit of the new project to compensate.”

(To be updated)