FCoin thunders, Zhang Jian confesses that over 900 million yuan cannot be paid, and foreign exchanges have significant financial risks

Source: Finance and Economics · Chain Finance

Author: Chen

At about 6 pm on February 17, Zhang Jian, the founder of Fcoin Exchange, released an announcement called "Fcoin Truth". In the announcement, Zhang Jian said that the biggest problem that FCoin currently faces is not the problem that the system cannot be recovered, and It is the problem that the capital reserve cannot be redeemed by users. At present, Fcoin is expected to be unable to redeem between 7000-13000 BTC.

Based on BTC's current price of $ 9,700, Fcoin's estimated asset size that cannot be redeemed is between $ 67.9 million and $ 126.1 million, equivalent to approximately RMB 475-882 million.

If the e-mail withdrawals of the previous days gave hope to Fcoin users, then Zhang Jian's announcement announced the death of Fcoin completely.

On February 10, the OKEx exchange decided to destroy 700 million OKBs. FCoin also announced that the FCoin team decided to permanently destroy all FTs (720,404,905.38 FTs) held by the team.

Shortly after the destruction announcement was issued, FCoin issued a temporary shutdown maintenance announcement; the next day, FCoin issued an announcement to extend the system maintenance time, saying that a system loophole that could cause risk control issues was found and is being fully repaired; on the evening of the 12th, FCoin announced again Due to factors such as the loss of key personnel of the team, severe damage to some systems and data, the system could not be recovered in a timely manner as planned, and announced that it would open an application for withdrawal of cash to users.

In response to this incident, a person close to Fcoin said that Fcoin's website and data are in the hands of technical staff, and wallets and announcements are in Zhang Jian's hands. Zhang Jian sometimes made announcements without going through the team. Zhang Jian destroyed FT this time. Without the team's unanimous consent, the website data was deleted by a technician without authorization.

This statement is also widely circulated in public channels. In the announcement issued today, Zhang Jian did not explain this.

In the announcement, Zhang Jian pointed out that the cause of the funding gap in Fcoin was data errors and decision errors.

Zhang Jian said that when Fcoin went online in 2018, because the transaction was too hot, there were data errors, which caused some users to receive incorrect mining returns. Since then, he and the team have used all their income to repurchase FT, resulting in continued outflow of assets. Since then, the Fcoin team no longer has sufficient funds to cover losses.

In response to this debt of at least 400 million yuan, Zhang Jian said that he will pay the user by mail withdrawal. The current mail withdrawal process will last 2-3 months. Because the current assets are not enough to pay the user, he will switch the game. Tao restarted and used the profits of individual new projects to compensate everyone for their losses.

But Zhang Jian's "responsibility" did not let FT investors relax for a few days. Zhang Sanqiang, a blockchain media practitioner, said to Chain Finance: "My feeling is that at the beginning I still had a fantasy and thought that I could withdraw cash slowly, but when I saw this announcement for the first time, I was the whole person It ’s all gone, but the sense of mission drove me to write a quick news, so I finished the news with trembling handwriting, and sent it right away, do you know the feeling? It is equivalent to pronounce my own death sentence, and then post a notice to tell you: You see, I'm stupid, as uncomfortable as eating my own shit. Although I haven't eaten shit, I feel that way. "

The previous noisy Fcoin activist group was uncharacteristically. From the time of the announcement to the time of publication, no one has spoken.

In fact, in addition to retail investors, some institutional investors have suffered huge losses due to the suspension of Fcoin operations. According to public information, in the second half of 2016, Zhang Jian resigned from Huobi and founded Bochen Technology. At the beginning, he obtained millions of angels from Origin Capital (later eight-dimensional capital), Huobi.com and node capital. Round investment, in the first half of 2017, we got another 10 million strategic investment from UFIDA. Time Stamp Capital, Danhua Capital, Singer Capital, Zipper Foundation and other institutions have also invested in Fcoin. In early 2019, the Blockchain Investment Institution Consensus Lab announced that its consensus industry alliance fund and FCoin reached a strategic cooperation to purchase 100 million FT from the secondary market. In the future, there are plans to further increase holdings and promote the reorganization of FCoin, and the purchase of FT has been held for a long time.

However, according to Zhang Jian Investment, early institutional investors have already carried out a large amount of cash.

At present, some lawyers believe that because Zhang Jian acknowledged all bonds, the case was transferred from a criminal case to a civil case.

In addition, due to many factors such as the legality of digital currency investment, Fcoin registration, and Zhang Jianfu's foreign affairs, the Fcoin case may be difficult to find a legal solution in China. At present, this problem is also one of the security risks faced by users of exchanges such as Binance who are physically controlled overseas.

According to on-chain finance, Zhang Jian had already traveled to Singapore when Fcoin was hot and bought a luxury home to settle there.

After the announcement of Fcoin, Yu Yuanbao also issued an announcement saying that the deposit and withdrawal were suspended. It is reported that some digital assets of Yu Yuanbao exist in the Fcoin wealth management account. Fcoin suddenly issued an announcement today indicating that the assets are in deficit. Business suspension charge and withdrawal function.

Some people believe that the suspension of Fcoin's operation may cause second-tier exchanges to face a wavelet run risk.