China: FCoin is unable to pay users over $ 125 million.

   FCoin founder Zhang Jian has published a comprehensive report describing the fall of the once promising cryptocurrency exchange platform. It turns out that the stock market is unable to pay $ 125 million in cryptocurrency deposits to its clients.

   On Monday (February 17, 2020), Jian posted a blog post on the FCoin blog that the stock market is unable to pay back between 7,000 and 13,000 BTC. According to the post, FCoin's troubles are caused not by fraud or burglary, but by a series of decision errors.

   Jian also stated that he is launching a new project in which profits from the venture will be used to compensate FCoin customers on the basis of a recovery plan that will be disclosed in the future. This long-term repayment plan can supposedly last up to three years.

   FCoin rewarded users with transaction fees for their trading activities on the platform. The stock exchange did this by creating its own FT tokens and spending 51 percent of total user supply.

   Under the system, users have received 100 percent of their transaction fees in FT tokens. Customers who had FT tokens also received 80 percent of the fees charged by FCoin each day.

   The inability to provide a solid audit of the platform resulted in some FT owners receiving more mining awards. Then, the sudden drop in the price of the FT token caused Jian to try to buy back the FT to support demand.

   However, when the platform's internal "tokenomics" were already distorted, the buy-back meant that FCoin had exhausted its reserves to recover almost worthless FT tokens. Since then, the stock exchange has destroyed the remaining 720 million FT in its resources.