Shuttered Chinese crypto exchange, FCoin has launched a new interim committee to revive its operations, beginning with the reopening of its website and the release of a payback plan for affected users.
FCoin CEO Zhang Jian disclosed earlier this month that the exchange could no longer handle user withdrawal requests after a combination of technical errors and indecision led to a shortfall of 7,000 to 13,000 BTC.
However, following up on the promise to resuscitate the business, FCoin announced today that the current team would use optimal tech solutions to resume operations of the FCoin and FMex websites, and then hand it over to the new interim committee.
The committee reportedly consists of community representatives with one of their initial tasks being the creation of a user’s asset-to-debt or equity-sharing plan that FCoin will follow to refund all affected users. FCoin also claims that its operations will be primarily dominated by the community going forward.
Path to Recovery?
While the latest announcement of plans to get back on track is sure to excite affected FCoin users, it is worth noting that not enough information is available on how the exchange plans to recoup its losses and pay back investors going forward.
Should the proposed ‘user’s asset-to-debt or equity-sharing plan’ fail to provide enough guidance, there is the possibility of facing a situation similar to now-defunct, New Zealand exchange Cryptopia.
As Coinfomania reported then, plans to get back on track ultimately failed, with users who nursed any hope of a comeback losing more funds after Cryptopia opened for a few weeks. The exchange subsequently filed for bankruptcy protection in the U.S, while any payback plans are yet to yield concrete results.
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