FCoin, a Singapore-based cryptocurrency exchange, recently had an incident that the crypto community managed to notice, although nobody knew what it was about. At first, many believed that the exchange was hacked, which was not surprising, considering how many others have fallen to hackers in recent years. However, over time, the truth started to surface, and the situation ended up being significantly more complicated.
The working theory right now is that the
exchange had a rogue employee who decided to damage the exchange by burning its
entire coin supply. As many likely know, the process of coin burning doesn’t
involve actual burning. Instead, the coins are locked away in a wallet from
which they cannot be retrieved.
The source of the new information ended up
being a Chinese commentator tied to HashKeyClub and Bitcoin Magazine, known as
According to Molly’s own source, the employee
of the exchange was made at the rest of the team, which is why they allegedly
deleted the entire database, causing the exchange to lose track of the tokens.
Yet another FCoin controversy
Prior to the incident, the exchange revealed
plans that the team will destroy the remaining FT tokens. The decision was made
due to the last year’s token burn when the community itself elected to destroy
This is also not the first time that the
exchange had faced a controversy. In the past, it was believed to be
manipulating the price and trading volume of tokens. Another thing that the
community had criticized is the exchange’s process known as
“transaction fee mining.” The process allows the exchange to unlock
51% of its token supply that was previously locked away intentionally.
The confusion deepened thanks to the platform’s claims that it had destroyed its tokens, only to post a ‘system maintenance advisory‘ on Twitter, as well as guidelines for withdrawing crypto assets. It is unknown whether anyone was able to withdraw their assets from the platform, and the FCoin’s value remains $0 according to CoinMarketCap.