Proactive KuCoin Exchange Halts Wallet Activity Allegedly Associated With RChain Token Scam
KuCoin, a crypto exchange based in Singapore, has recently decided to block a cryptocurrency wallet which was allegedly involved in a recent token scam which involved RChain (RHOC).
The company affirmed that counterfeit money was used in an escrow transaction involving its tokens recently. This prompted the exchange to freeze the wallet in order to investigate better what is happening.
The scam happened during a deal in which RChain would send 11 million of its tokens to partners of the company if they put their money on escrow accounts. Many people did it and the company sent the money. The problems started, though, when the exchange discovered that the fiat money on the wallet was counterfeit.
RChain contacted KuCoin soon afterward and the company decided to bock the address of the people who were believed to be scammers. At the moment, the address is currently blocked while pending investigation in order to discover how to proceed.
Possibly, the amount of money will be sent back to RChain in case it is determined that the company was scammed. The blocked account has around $310,000 USD right now.
At the time of this report, RHOC tokens can be bought by $0.0283 USD each one and they have a market cap of $10.6 million USD, which makes them not really valuable at all.
Back in January, however, each token was worth around $2.90 USD, which basically made it a dead coin so far, as it has lost 99% of its value since then.
The story of RChain is, indeed, very sad, but at least it looks like the people who counterfeited the money and scammed the company will give the tokens back, so the exchange will win with at least that.