FCoin Collapses - Revision history

Azoundria: Another 30 minutes complete. All sources merged in. Information relocated around. New logo prepared.

2023-11-30T19:41:00Z

Another 30 minutes complete. All sources merged in. Information relocated around. New logo prepared.

Azoundria at 19:29, 1 May 2023

2023-05-01T19:29:25Z

← Older revision		Revision as of 13:29, 1 May 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/fcoincollapses.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/fcoincollapses.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Theme.zdassets.com/theme_assets/9761735/4bf9c76f5c0ab5f04579e7be70abcfbd077b8498.png\|thumb\|FCoin]]Whether people want to call something poor auditing or an exit scam, the end result is that investors lose their funds. Any model which deals with partial reserves, or is unaware of the reserve level, is subject to this risk. China (just like Canada) lacks any sort of solid regulatory framework for exchanges at all. It’s only fitting we should see yet another exchange collapse while I’m in the midst of writing this post.		[[File:Theme.zdassets.com/theme_assets/9761735/4bf9c76f5c0ab5f04579e7be70abcfbd077b8498.png\|thumb\|FCoin]]Whether people want to call something poor auditing or an exit scam, the end result is that investors lose their funds. Any model which deals with partial reserves, or is unaware of the reserve level, is subject to this risk. China (just like Canada) lacks any sort of solid regulatory framework for exchanges at all. It’s only fitting we should see yet another exchange collapse while I’m in the midst of writing this post.

	This exchange or platform is based in China, or the incident targeted people primarily in China.		This exchange or platform is based in China, or the incident targeted people primarily in China.<ref name="cointelegraph-106" /><ref name="slowmisthacked-1160" />
	<ref name="cointelegraph-106" /><ref name="slowmisthacked-1160" />

	== About FCoin ==		== About FCoin ==
Line 45:		Line 44:
	!Description		!Description
	\|-		\|-
	\|February 1st, 2020 12:01:35 AM		\|February 1st, 2020 12:01:35 AM MST
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
Line 53:		Line 52:
	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
Line 72:		Line 74:
	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			When countries and governments prevent legitimate entities from operating exchanges, the result is a market void that is often filled with criminals. Where identities of operators are known and the funds are stored in a proper multi-signature wallet, a situation where one party takes the funds has never happened. You can also be certain that there was no auditing happening, and the exchange likely hadn't contemplated any hot wallet contingencies.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

	== Prevention ~~Policies ==~~		{{Prevention:Regulators:End}}
	When countries and governments prevent legitimate entities from operating exchanges, the result is a market void that is often filled with criminals. Where identities of operators are known and the funds are stored in a proper multi-signature wallet, a situation where one party takes the funds has never happened. You can also be certain that there was no auditing happening, and the exchange likely hadn't contemplated any hot wallet contingencies.

	== References ==		== References ==
	<references><ref name="cointelegraph-106">[https://cointelegraph.com/news/fcoin-blames-poor-auditing-for-shutdown-but-others-suspect-exit-scam FCoin Blames Poor Auditing for Shutdown, but Others Suspect Exit Scam] (Feb 21, 2020)</ref>		<references><ref name="cointelegraph-106">[https://cointelegraph.com/news/fcoin-blames-poor-auditing-for-shutdown-but-others-suspect-exit-scam FCoin Blames Poor Auditing for Shutdown, but Others Suspect Exit Scam] (Feb 22, 2020)</ref>

	<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25, 2021)</ref></references>		<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 26, 2021)</ref></references>

Azoundria at 17:13, 17 February 2023

2023-02-17T17:13:44Z

← Older revision		Revision as of 11:13, 17 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/fcoincollapses.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/fcoincollapses.php}}
			{{Unattributed Citations}}

	Whether people want to call something poor auditing or an exit scam, the end result is that investors lose their funds. Any model which deals with partial reserves, or is unaware of the reserve level, is subject to this risk. China (just like Canada) lacks any sort of solid regulatory framework for exchanges at all. It’s only fitting we should see yet another exchange collapse while I’m in the midst of writing this post.		[[File:Theme.zdassets.com/theme_assets/9761735/4bf9c76f5c0ab5f04579e7be70abcfbd077b8498.png\|thumb\|FCoin]]Whether people want to call something poor auditing or an exit scam, the end result is that investors lose their funds. Any model which deals with partial reserves, or is unaware of the reserve level, is subject to this risk. China (just like Canada) lacks any sort of solid regulatory framework for exchanges at all. It’s only fitting we should see yet another exchange collapse while I’m in the midst of writing this post.

	This exchange or platform is based in China, or the incident targeted people primarily in China.		This exchange or platform is based in China, or the incident targeted people primarily in China.
			<ref name="cointelegraph-106" /><ref name="slowmisthacked-1160" />

	== About FCoin ==		== About FCoin ==
Line 23:		Line 25:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
Line 45:		Line 46:
	\|-		\|-
	\|February 1st, 2020 12:01:35 AM		\|February 1st, 2020 12:01:35 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
Line 58:		Line 55:

	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $125,000,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Line 69:		Line 66:

	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
Line 80:		Line 77:

	== References ==		== References ==
	[https://cointelegraph.com/news/fcoin-blames-poor-auditing-for-shutdown-but-others-suspect-exit-scam FCoin Blames Poor Auditing for Shutdown, but Others Suspect Exit Scam] (Feb 21)		<references><ref name="cointelegraph-106">[https://cointelegraph.com/news/fcoin-blames-poor-auditing-for-shutdown-but-others-suspect-exit-scam FCoin Blames Poor Auditing for Shutdown, but Others Suspect Exit Scam] (Feb 21, 2020)</ref>

	[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25)		<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25, 2021)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/fcoincollapses.php}} Whether people want to call something poor auditing or an exit scam, the end result is that investors lose their funds. Any model which deals with partial reserves, or is unaware of the reserve level, is subject to this risk. China (just like Canada) lacks any sort of solid regulatory framework for exchanges at all. It’s only fitting we should see yet another exchange collap..."

2023-01-25T17:11:54Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/fcoincollapses.php}} Whether people want to call something poor auditing or an exit scam, the end result is that investors lose their funds. Any model which deals with partial reserves, or is unaware of the reserve level, is subject to this risk. China (just like Canada) lacks any sort of solid regulatory framework for exchanges at all. It’s only fitting we should see yet another exchange collap..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/fcoincollapses.php}}

Whether people want to call something poor auditing or an exit scam, the end result is that investors lose their funds. Any model which deals with partial reserves, or is unaware of the reserve level, is subject to this risk. China (just like Canada) lacks any sort of solid regulatory framework for exchanges at all. It’s only fitting we should see yet another exchange collapse while I’m in the midst of writing this post.

This exchange or platform is based in China, or the incident targeted people primarily in China.

== About FCoin ==
“Less than two years after bursting onto the scene, Chinese crypto exchange FCoin has shut down its operations. The platform, founded by Zhang Jian, also says it may be unable to pay the 7,000 to 13,000 Bitcoin (BTC) — about $67 million to $125 million — that is owed to its customers.” “While FCoin was pulling in large transaction volumes, the back-end architecture that ought to prevent any abuse of the system was not yet in place.” “poor back-end controls on the exchange meant that some users were receiving fee reimbursements in excess of the stipulated amounts prescribed by the model.”

This exchange or platform is based in China, or the incident targeted people primarily in China.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - FCoin Collapses
!Date
!Event
!Description
|-
|February 1st, 2020 12:01:35 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
When countries and governments prevent legitimate entities from operating exchanges, the result is a market void that is often filled with criminals. Where identities of operators are known and the funds are stored in a proper multi-signature wallet, a situation where one party takes the funds has never happened. You can also be certain that there was no auditing happening, and the exchange likely hadn't contemplated any hot wallet contingencies.

== References ==
[https://cointelegraph.com/news/fcoin-blames-poor-auditing-for-shutdown-but-others-suspect-exit-scam FCoin Blames Poor Auditing for Shutdown, but Others Suspect Exit Scam] (Feb 21)

[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25)