The following evening, the CFD team shut down their official website and social media accounts, leaving investors shocked. KuCoin acted fast and suspended CFD trading in order to protect the interests of investors on the exchange.
By this point, it was becoming obvious in the community that Confido had pulled an exit scam.
KuCoin then implemented an emergency loss prevention programme for those investors that were affected.
Let us reassure you all, that KuCoin strives to remain a transparent and responsible cryptocurrency exchange to all our users. Please read about the measures we took to handle the situation in the following announcements:
Update On Confido and the Compensation Plan
KuCoin has been unable to get in contact with Confido. But we will do our best to minimize the losses of all KuCoin users who invested in CFD. As the “people’s exchange”, we at KuCoin pledge to remain loyal to all our users.
Here’s the outline of the compensation plan:
This applies to all KuCoin users who had made CFD trades until the suspension of CFD on November 20 2017 20:25 UTC+8.
KuCoin will refund your final CFD balance at a fixed rate 0.0000038 BTC per CFD (approximately $0.03 USD per CFD at the tie of writing). The final amount of compensation in BTC will be deposited directly into each user’s account.
This emergency fund will be deposited into eligible users’ accounts before 24:00, Nov 30th, 2017 (UTC+8)
Furthermore, users affected will get to keep their CFD and do with them as they deem appropriate. KuCoin will not allow trading of the tokens, but users can choose to withdraw them.
We trust our efforts to minimize the losses caused by this incident proves that protecting users’ interest is KuCoin is our main mission. We’ll do everything we can to fulfill this responsibility and protect investors in this risk-prone industry.
KuCoin is working hard to set itself apart from other exchanges by becoming a beacon of trust in an otherwise murky industry. KuCoin is both confident and proud to reassure all our users we always put our responsibility towards investors before profits.
We will step up our efforts and carry in depth research on all future tokens to be listed on the exchange. We are currently developing measures to reduce the chances of something like this happening again.
Last but not least, we want to remind everyone that investing in cryptocurrency is EXTREMELY RISKY. Please proceed with caution and never invest more than what you are willing to lose.
We want to invite you to share this announcement to inform everyone affected about this compensation plan.
Company Name: KuCoin
Contact Person: Media Relations