Cobinhood CEO provides clarity on the rumors: "This is no exit scam"

29 May, 2019 | Updated: 29 May, 2019
by Richard Allen
Cobinhood CEO provides clarity on the rumors: This is no exit scam

Regarding the recent controversy surrounding Taiwan-based zero-fee crypto exchange Cobinhood, co-founder and CEO Popo Chen has published a letter clarifying the situation.

Chepicap reported earlier this month that Chen had been let go as the exchange’s CEO due to “emotional instability.” Announced on its Telegram channel, Chen had reportedly not been involved with the exchange since April this year. Additionally, the exchange filed a police report against its former CEO.

Then several weeks later, news began circulating about the financial stability of the company, with reports stating Cobinnhood had filed for bankruptcy after allegedly pulling an exit scam. To provide some clarity, Chen has unequivocally stated “This is no exit scam. The company didn’t file for bankruptcy either.”

Elaborating, Chen states that on April 26, an institutional investor accused Chen of financial misconduct. As a result of the ensuing investigation, Chen’s access to the company was removed. 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.

However, 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 rumor may have been started because all of these things happened right after the DXN token public sale. As a result, the value of the DXN tokens have been tanking, which Chen describes as “unfair to those unvested DXN holders.” As such, the company’s shareholders have agreed to make sure unvested token holders “have been looked after.”

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