Singapore-based crypto exchanges employee allegedly burned $75m of FCoin

Singapore-based crypto exchanges employee allegedly burned $75m of FCoin

  • Ali Raza
  • 15th February, 09:47
  • Controversial Singapore-based crypto exchange, FCoin, recently suffered an incident in which a rogue employee supposedly burned $75m worth of the native token.
  • The funds allegedly belonged to the exchange itself, as well as its team members.
  • The exchange was heavily criticized in the past by many, and for various reasons, including its ICO, processes, and other aspects.

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 “Molly.”

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 5,044,114,837.92336501 FT.

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.

By Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.

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