The Cobinhood Founder: "There is no exit scam, neither bankruptcy"

Cobinhood exchange has been at the centre of the scandal for several days. Users suspect it of fraud and exit-scam. On 29 May, following the recent controversy which surrounded Taiwanese crypto exchange, the co-founder and CEO Popo CHEN has published a letter to clarify the murky situation.

Statement: There is no exit scam, neither bankruptcy. The company has been through a lot but we are still alive. Here is a letter from Popo to everyonehttps://t.co/7RHDokLkFe@dexonfoundation

— COBINHOOD (@COBINHOOD) 29 мая 2019 г.

Earlier this month it became known that Chen had been let go as the exchange’s CEO, with the reason described as “emotional instability.” Chen had reportedly not been involved with the exchange since April this year. Additionally, the exchange filed a police report against its former CEO. A few weeks later, rumours appeared that Cobinhood reportedly filed for bankruptcy.

In his letter, Chen explicitly stated: “This is no exit scam. The company didn’t file for bankruptcy either.” According to him, an institutional investor accused Chen of financial misconduct. As a result of the ensuing investigation, Chen’s access to the company was removed. Public disputes meant the exchange had to announce its suspension on May 20, and all of its employees had to be laid off. Cobinhood’s parent company, Blocktopia, then formed a smaller team to run the daily operations of both Cobinhood and Dexon Foundation.

Chen states the exit scam rumour may have been started because all of these things happened right after the DXN token public sale. Once the public found out, Chen met with Cobinhood’s other co-founder, Wei-Ning, and both agreed Chen should be brought back on the team.

Image courtesy of Bitcoin Exchange Guide