On the evening of February 12, an announcement on the FCoin Exchange regarding "the latest progress of system maintenance and application for withdrawal of cash " caused huge controversy in the community. The announcement stated:
1. After verification, the system has not been hacked by external hackers.
Second, due to the loss of key personnel in the team and severe damage to some systems and data, it was impossible to recover in a timely manner as planned. FCoin is looking for ways to rebuild the system and restore data. The subsequent restoration progress and estimated time are subject to future announcements.
- The head exchange spoiled, but who did not solve the Staking pain point?
- We sorted out 40 "running road" cryptocurrency exchanges, all of which share these common routines
- Can the community restart and can the losses be recovered? 8 big events to clarify the way for FCoin to defend your rights
- Hong Kong's anti-acquisition new deal will take effect, and the "coin stock" of the fire currency will be renamed as a risk
- When the PoS gold rush era is opened, who will become the next bit continent?
- 0.32 dollars to buy 40 bitcoins: the currency exchange will not work hard, the regular army will come
3. Considering the current market volatility, FCoin is also studying and formulating a feasible plan to reduce the risk of liquidation of the bars and contract users when the website resumes operation.
Fourth, in order to meet the needs of some users who urgently need to withdraw, in the case that the system cannot be restored temporarily, we open the operation of applying for withdrawal by mail. The announcement denied hacking, and "key personnel lost contact, severe damage to some systems and data" exacerbated the spread of panic. FCoin exchange stolen? Team running? Division within the team? After the announcement, various speculations and questions spread in the community.
However, the cause of the incident goes back three days.
Three days and three announcements
At around 7pm on February 10th, after OKEx destroyed 700 million OKBs and ZBs destroyed 400 million ZBs , FCoin announced that it will permanently destroy all FTs (about 720 million) held by the FCoin Team. carry out. The FT price rose from 0.40088 US dollars to 0.0486 US dollars that night, an increase of 20.82%.
Late at night on February 10, FCoin officially announced that " at 23:50 (GMT + 8) on February 10, 2020, it will be temporarily shut down for maintenance, with an initial estimated duration of 4 hours ." After the announcement, the FT price fell from 0.048 US dollars, to a minimum of 0.0401 US dollars, a decrease of 16.46%.
Subsequently, on February 11th, FCoin officially released an announcement saying, "In yesterday's emergency maintenance, a system loophole that could cause risk control problems was found. As some people on the platform are not yet in place and some modules of the system need to be rebuilt, the website is expected It will take 1 to 2 days to return to normal. "
Not long after, FCoin's card order phenomenon appeared. After users placed an order, they could not cancel the order whether they bought or sold. Some investors found that all pages of the FCoin exchange could not be opened, and some investors reported that they could not contact the official staff.
At the same time, the network uploaded pictures of "FCoin Permanent Suspension" and suspected FCoin funds flow. After verification, these pictures were forged, and FCoin officials have not released the announcement.
Someone asked Zhang Jian, FCoin's founder, and Zhang Jian's response was: the problem is being fixed, there is no rest overnight, and it is still in the process of repair.
The FT price was finally fixed at approximately $ 0.0424.
Key Person Response
As soon as the incident broke out, the community exploded. Some netizens stated in the official FCoin Telegram group (as shown below) that "the FCoin destroys all FTs held by the team" was made by Zhang Jian personally, not by the team. The team expressed dissatisfaction and logged into the background to delete the website module, which eventually caused the website to crash.
Babbitt contacted the key figure "dean" in the picture, and the other party revealed that it had stopped work in mid-January, and it was not clear about the specific circumstances of the incident and how to follow up. As for the FT and FM holdings, he said he was also panic.
In addition, netizen "Ss7yb" asked FCoin official on Twitter, "Why upgrade and when will it be completed?" FCoin responded by saying,
The problem has been corrected. The loophole will be clarified soon, the member funds are not affected, and we should start and run as soon as possible. As understood in the announcement, the problem was a team issue, not a platform issue.
In response to the digital asset related issues that investors care about, Beijing Lian'an monitoring found that
At present, the ETH and related ERC20 tokens in the FCoin hot wallet have been transferred to the address starting at 0x5a1b06, but the related operations have only begun this morning. This may also be the normal security isolation of digital assets during the FCoin reconstruction system.
Beijing Lianan believes that from the perspective of the hot wallet of FCoin's related assets on the TRON chain, the related assets are still in the wallet and have not been transferred out in the past two days.
From "transaction is mining" mechanism innovation to "sustainable mining"; from issuing platform currency FT to restructuring and launching Fractal public chain; from referendum to destroy all unissued FTs, to permanently destroying all FTs held by the team . Every big move of FCoin can attract the attention of the industry.
In response to this incident, FCoin proposed a solution for mail withdrawal, requiring users to use FCoin's registered email address to send an email to email@example.com. The amount of currency in the withdrawal application email does not need to be accurate (it may be written out based on the impression) The official will check with the backed up user balance (net assets) data and transfer the currency of the withdrawal request to the designated address according to the actual amount.
Despite this, the security issues associated with e-mail withdrawals remain the focus of community controversy. Some KOLs believe that the "incident" of FCoin is a wake-up call for users, that is, don't put digital assets in the same exchange, and decentralization can ensure security.
As of press time, FCoin's official website announced the latest announcement that it has started processing withdrawal applications for user emails. Specific steps include:
1. We receive the user's withdrawal application; 2. Perform basic information verification and asset verification; 3. Issue the withdrawal confirmation code; 4. Receive the user's withdrawal confirmation; 5. Verify the user's asset integrity and specific amount; 6. Perform withdrawal operations; 7. Users receive the relevant withdrawal currency.
FCoin officials also emphasized that the verification and withdrawal process of this method all need to be processed manually, so the processing speed is relatively slow, and the number of simultaneous applicants in the previous period is large. Please wait for patients who have submitted applications.
As for the progress of the incident, Babbitt will continue to pay attention.