Cryptocurrency exchange Fcoin expects to default on as much as $125M of users' bitcoin

Quick Take

  • Chinese cryptocurrency exchange FCoin may default on 7,000 to 13,000 BTC (around $67 million to $125 million) of user funds
  • Founder and former Huobi CTO Jian Zhang revealed details of the exchange’s status and financial difficulties
  • Launched in May 2018, FCoin was able to garner staggering trading volumes overnight via a new business model that paid out 80% of the platform’s revenue from transaction fees in the platform’s FT exchange tokens – such a model had drawn many controversies in 2018