Exchange managed to lose 7000- 13000 BTC in Non Payment?(BTC downtrend reason?)

exstasie

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Quote from: vennali on February 19, 2020, 04:51:27 AM

Quote from: exstasie on February 19, 2020, 01:20:07 AM

That was quick. Exit scam confirmed!

Quote

The verification and withdrawal processes all require manual processing, so the processing speed is relatively slow. In addition, there are more people applying at the same time, so please wait patiently after submitting your application.
https://fcoin.zendesk.com/hc/en-us/articles/360042843754-Announcement-on-the-start-of-processing-withdrawal-applications

If you're still waiting on a manual withdrawal at this point, you're screwed. The money is gone. I guess the whole "polluted assets" story was just a ploy to give the operators time to disappear.

It is heartbreaking how so many exchanges have gotten away with it. Maybe this is another call for regulation?

I doubt it. In this digital world, crypto-only exchanges can be launched from all manner of privacy-friendly countries. They can operate servers in places they can't be seized, and with no bank accounts, they have little financial exposure to regulators.

It's a call for common sense. People need to stop storing so much of their coins on exchanges, especially new and disreputable ones. When you need to use a centralized exchange, minimize your time exposure. Deposit, trade, withdraw. Don't store.

redsun114

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This should redirect us to never trust any random exchange. There are a number of exchanges and majority of those exchanges give such useless reasons for loosing investors funds. There is not even any legal action which can be taken against such exchanges as cryptocurrency trading is not yet legalized which does not even legalize the circulation. That is the reason why we should only stick to limited exchanges which are serving us since long time.

I was actually shocked to read the subject. 13000 BTC is never a small amount and that exchange named Fcoin actually treated it much lightly without even giving a brief explanation about what actually happened.

btcto200k

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THIS IS EXACTLY WHY you use an exchange that has transparent custody like Blockchain board of derivatives. Thank me later.

Quidat

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Quote from: davinchi on February 19, 2020, 07:41:40 AM

Quote from: exstasie on February 19, 2020, 01:20:07 AM

Quote

The verification and withdrawal processes all require manual processing, so the processing speed is relatively slow. In addition, there are more people applying at the same time, so please wait patiently after submitting your application.
https://fcoin.zendesk.com/hc/en-us/articles/360042843754-Announcement-on-the-start-of-processing-withdrawal-applications

If you're still waiting on a manual withdrawal at this point, you're screwed. The money is gone. I guess the whole "polluted assets" story was just a ploy to give the operators time to disappear.

Manual withdrawals would never be processed from such exchanges and they might even delay your manual withdrawals by months stating that there are excess number of withdrawals and they would need time to process each and every request. If they have shady intentions than they would find dozens of reasons to avoid the investors.

This indeed is a exit scam but yet many of the traders from that exchange might be looking to withdraw their funds which is hardly possible now. Such exchanges move on the funds to some other exchange or wallets without even letting the community know about it so that they could give any ponzi reason behind their exit scam. Traders from Fcoin should treat this as a lesson and should avoid going on such platforms in the coming future.

Even a simple hacking incident reason isnt really that convincing after all, just like what happened on previous exchangers that have issues on getting hacked then closed its doors.
We have seen lots but still havent resolved and those coins are lost forever or simply means those are in the pockets of its owners itself.
Even the top exchange like Binance had suffered breaches too so i dont see a point why a certain person would tend to make use of unheard or unknown
exchangers in the market.

justdimin

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Well, there are enough idiots in the world to think that there could be a way for them to get rich very quickly and there are enough greedy and morally flexible people that they are willing to scam those people. Nobody in this world except lottery winners are getting super rich in a day, if you see an offer that is miles better than any other offer in the world and you invest into it, you are basically allowing yourself to get scammed.

There was a lot of cloud miners back in the day who did the same thing, they offered 10%+ profits per month for putting your money there but in the end people realized the money was going straight to their pockets and not for profiting. FCoin is not the disease, it is the result of the disease and we need to first find a way to heal the disease first to not have any more FCoin like stuff.

davinchi

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Quote from: exstasie on February 19, 2020, 01:20:07 AM

Quote

The verification and withdrawal processes all require manual processing, so the processing speed is relatively slow. In addition, there are more people applying at the same time, so please wait patiently after submitting your application.
https://fcoin.zendesk.com/hc/en-us/articles/360042843754-Announcement-on-the-start-of-processing-withdrawal-applications

If you're still waiting on a manual withdrawal at this point, you're screwed. The money is gone. I guess the whole "polluted assets" story was just a ploy to give the operators time to disappear.

Manual withdrawals would never be processed from such exchanges and they might even delay your manual withdrawals by months stating that there are excess number of withdrawals and they would need time to process each and every request. If they have shady intentions than they would find dozens of reasons to avoid the investors.

This indeed is a exit scam but yet many of the traders from that exchange might be looking to withdraw their funds which is hardly possible now. Such exchanges move on the funds to some other exchange or wallets without even letting the community know about it so that they could give any ponzi reason behind their exit scam. Traders from Fcoin should treat this as a lesson and should avoid going on such platforms in the coming future.

vennali

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Quote from: exstasie on February 19, 2020, 01:20:07 AM

Quote from: vennali on February 19, 2020, 12:41:17 AM

There was another report suggesting that Fcoin's BTC were transferred to other exchanges.

So, yeah. There's that figured out on where the BTC went.
Source

That was quick. Exit scam confirmed!

Quote

The verification and withdrawal processes all require manual processing, so the processing speed is relatively slow. In addition, there are more people applying at the same time, so please wait patiently after submitting your application.
https://fcoin.zendesk.com/hc/en-us/articles/360042843754-Announcement-on-the-start-of-processing-withdrawal-applications

If you're still waiting on a manual withdrawal at this point, you're screwed. The money is gone. I guess the whole "polluted assets" story was just a ploy to give the operators time to disappear.

It is heartbreaking how so many exchanges have gotten away with it. Maybe this is another call for regulation?

exstasie

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Quote from: vennali on February 19, 2020, 12:41:17 AM

There was another report suggesting that Fcoin's BTC were transferred to other exchanges.

So, yeah. There's that figured out on where the BTC went.
Source

That was quick. Exit scam confirmed!

Quote

The verification and withdrawal processes all require manual processing, so the processing speed is relatively slow. In addition, there are more people applying at the same time, so please wait patiently after submitting your application.
https://fcoin.zendesk.com/hc/en-us/articles/360042843754-Announcement-on-the-start-of-processing-withdrawal-applications

If you're still waiting on a manual withdrawal at this point, you're screwed. The money is gone. I guess the whole "polluted assets" story was just a ploy to give the operators time to disappear.

vennali

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#SWGT CERTIK Audited

There was another report suggesting that Fcoin's BTC were transferred to other exchanges.

So, yeah. There's that figured out on where the BTC went.
Source

NeuroticFish

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Quote from: TheBeardedBaby on February 18, 2020, 07:51:14 AM

And we all go back to the good old trust.

Heh, as long as some exchanges still operate after not giving back user funds after hack, inside job or whatever,
as long as people still keep massive amounts of coins in the exchanges instead of their own wallets,
as long as exchanges still have customers after fishy behavior (see Kraken users getting strange hacks with multiple levels of 2FA on, see Yobit token machine).. the trust seem to be .. unnecessary.

I guess that we deserve our fate, really. And sorry, but exchanges are supposed to be financial (not banking, but not too far) institutions after all, since we talk here about coins and tokens with real value (at least some of them), not Monopoly money.

TheBeardedBaby

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Quote from: NeuroticFish on February 18, 2020, 05:00:39 AM

Quote from: TheBeardedBaby on February 18, 2020, 04:39:12 AM

There should be some kind of regulation, everyone can create an exchange and then just steal the funds, like what we see here.

There's quite a contradiction. Regulations, among other things (including the fact the owners may be prosecuted for theft) bring the so much hated KYC (so the prosecutors get to know which individuals the funds are stolen from).
Don't take me wrong, I am pro-regulations for companies, but it's hard (actually impossible) to keep everybody happy.

The problem is that all the regulations and KFC ( i mean KYC) are turning the exchanges into a bank institutions,the government have overview of what you possess and still can turn you down if they want so.
And we all go back to the good old trust. Mt.Gox was also trusted exchange but see what happened, people never believe it will happen to them. Binance was hacked but they manage to recover, so they build more trust but you never know. Same for me, I don't know what I can expect from Coinbase, I never had any issues with them, but this does not guarantee that they are honest and won't still my funds there, that's why I keep only those I'm feeling "OK" (if you can every feel ok for such things but) to risk.

sheenshane

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Eventually, this kind of scenario was probably going to exit scam. They are based on China and usually, people there have a potential of big-time investors that might be a good amount to run. But let's not accuse them quickly, there are too many various reasons why they are unable to pay their users in a big amount. Sounds like a Ponzi scheme waiting for their pool fund becomes big and scams many users.

f you know how works pyramid scheme they act like that, they want increased the fund from investors and didn't allow members to withdraw a big amount, probably they will run when it was full.

Wexnident

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It amazes me how people can spout absolute BS, and in such a long and roundabout way as well. I imagined them typing it out without even batting an eye from the reasons they gave. They made a mistake and failed to adapt to the users needs and wants, and failed to limit whatever they should have. They already failed as a company tbh, but as a way to make a quick buck? I'd guess they already achieved as such.

Also, we lost about $500 in BTC price, not enough to be called a downtrend tbh. Probably a correction would be a better term? We have seen how BTC has continuously risen for the past weeks after all. Might have corrected itself for now and would show a sideways movement for a few weeks before pushing ahead again.

xiver88

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Funds started to move from the exchange's cold wallet. Another reason for the possible dump is selling off by another scam PLUSTOKEN. OKEx and Huobi are 2 exchanges used to sell massive btc and eth.

tmfp

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Quote from: TheBeardedBaby on February 18, 2020, 04:39:12 AM

There should be some kind of regulation, everyone can create an exchange and then just steal the funds, like what we see here.
We are taking here about 125 000 000$ with the current exchange rate, and this is considered a small exchange. As much as I hate regulations, there should be some kind of order, otherwise people will continue to distrust the bitcoin (and crypto in general) and we are riding away from the mass adoption.

This isn't crypto, this is just a gambling mechanism that has been constructed around the use of tokens.
As a so-called "scam buster" I am reluctant to victim blame, but are there any real victims here?
To my eyes transaction fee mining is just a modernized version of the dead end HYIP industry, another example of complicit grifting: there was no need to use that exchange for bona fide reasons. Similar to the "Investbox" bullshit.

NeuroticFish

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Quote from: TheBeardedBaby on February 18, 2020, 04:39:12 AM

There should be some kind of regulation, everyone can create an exchange and then just steal the funds, like what we see here.

There's quite a contradiction. Regulations, among other things (including the fact the owners may be prosecuted for theft) bring the so much hated KYC (so the prosecutors get to know which individuals the funds are stolen from).
Don't take me wrong, I am pro-regulations for companies, but it's hard (actually impossible) to keep everybody happy.

TheBeardedBaby

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₿uy / $ell ..oeleo ;(

There should be some kind of regulation, everyone can create an exchange and then just steal the funds, like what we see here.
We are taking here about 125 000 000$ with the current exchange rate, and this is considered a small exchange. As much as I hate regulations, there should be some kind of order, otherwise people will continue to distrust the bitcoin (and crypto in general) and we are riding away from the mass adoption.

pooya87

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just like about 70 other exchanges before, they are also lying to cover up their scam. this is actually becoming a popular way for small exchanges to close up shop with a good profit in the end. they first start a business (exchange) then fail to make ends meet then they have to rob their small number of users to be able to shut it down and be left with some money.

as for the other question nobody seems to address, there is no "bitcoin downtrend". a downtrend would have been if price went down to $8k at least not a tiny drop just below $10k which is perfectly normal.

abel1337

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Quote from: joniboini on February 18, 2020, 12:43:52 AM

If the owner can run away with this, then it will be pretty bad. On top of that, some news said he's going to 'switch track' and hope to be able to pay back from the new business profits. That's like saying, 'Hey I stole your money, but don't worry I'll pay you back when I scam others'.

Basically the owner is going for an exit scam and won't pay the recent victims, Opening a new business to get profit but it's hard to trust that because of the owner lost its trust from the market and it can basically go on bankrupt on the other way.

The victims' combined assets is too large to make a bankrupt exchange to pay up the loss. They should at least payout some of their users slowly.

This would likely turn into scam Undecided

joniboini

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If the owner can run away with this, then it will be pretty bad. On top of that, some news said he's going to 'switch track' and hope to be able to pay back from the new business profits. That's like saying, 'Hey I stole your money, but don't worry I'll pay you back when I scam others'.

tmfp

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"Common rogue from Russia with a bare ass."

Trans-fee mining was essentially a covert ICO scheme by Fcoin.
By supporting their intrinsically valueless token's price with "real" money and being too full of hubris to do their sums properly, they Ponzi'd themselves; quite funny really.

vennali

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Quote from: jackg on February 17, 2020, 04:20:22 PM

I hadn't heard of that exchange, why would they be trusted with 13K btc?

I'm guessing they're not acutally that big and trusted when compared with coinbase or the others (bitfinex, bitstamp etc)... So it probably won't have much of an impact on the price...

And why would you come clean on a massive post on reddit, everything just says they probably scammed or wanted something else from it.

I hadn't heard of them either. They were big in China apparently (at least that's what the volume suggests). Not known to the world outside. I really dont know what to think of it though. Complete mismanagement of funds.

milewilda

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Quoting some final words. lol

Quote

Final words

"The unselfish beginning will bring disastrous consequences; the greed of human nature is the motive force for the advancement of society."

Things in the world are so ironic. After seeing too many greedy people, I was able to fill them up, and did not forget to call you a silly X. However, I was determined to achieve my career without fear of sacrificing all my wealth, but ended up in the name of a runaway.

Responsible for the end of your life.

To make this story short. This is just indeed an exit scam and all things written are just pure BS alibis.

exstasie

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Quote from: vennali on February 17, 2020, 08:36:28 AM

So, an exchange called FCoin came clear that they are unable to pay its users upto 13000 BTC of non-payment. They came clear on a reddit post here. They claim that their exchange wasnt hacked, nor and internal volume run but it was a data error and a decision error. How are these exchanges losing investors/customers money like that and that too at such crazy amounts?

It sounds like they erroneously calculated/credited dividends, and allowed people to trade and withdraw that money. This lead to insolvency beginning in mid-2018:

Quote from: jackg on February 17, 2020, 04:20:22 PM

And why would you come clean on a massive post on reddit, everything just says they probably scammed or wanted something else from it.

Certainly could be an exit scam, yup.

jackg

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I hadn't heard of that exchange, why would they be trusted with 13K btc?

I'm guessing they're not acutally that big and trusted when compared with coinbase or the others (bitfinex, bitstamp etc)... So it probably won't have much of an impact on the price...

And why would you come clean on a massive post on reddit, everything just says they probably scammed or wanted something else from it.

rosezionjohn

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Such bs story, he should have gone straight to the point without being overly dramatic to look pitiful. They were unprepared and undermanned from the very start and rushed the launching of their platform. This is what happens when you chase them profits. Greed made them continue despite knowing the mining issues early on.

vennali

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#SWGT CERTIK Audited

So, an exchange called FCoin came clear that they are unable to pay its users upto 13000 BTC of non-payment. They came clear on a reddit post here. They claim that their exchange wasnt hacked, nor and internal volume run but it was a data error and a decision error. How are these exchanges losing investors/customers money like that and that too at such crazy amounts?

Topic: Exchange managed to lose 7000- 13000 BTC in Non Payment?(BTC downtrend reason?) (Read 303 times)