Business

Steve Kaaru

KuCoin and RChain act promptly to thwart fraudulent investors’ plans

KuCoin, the cryptocurrency exchange, acted promptly to thwart the plans of alleged fraudsters involved in the purchase of RChain’s RHOC tokens. The exchange blocked a crypto address belonging to the alleged fraudsters after receiving notification from the RChain team.

It all started when RChain’s president Greg Meredith went to Spain to meet with a group of investors. The investors had expressed an interest in investing in the project. According to a blog post by the crypto startup, the investors underwent the necessary KYC process before finalizing the transaction.

The investors put the money in an escrow which was being operated by an independent third party. The RChain team then proceeded to send 11 million RHOC tokens to their crypto address. At the time, the tokens were worth $310,000.

Shortly after sending the tokens, the RChain team was alerted that the money in the escrow was counterfeit. The team then immediately contacted authorities in Spain as well as the FBI to report the crime. It also contacted KuCoin crypto exchange alerting it of the fraudulent transaction. The exchange was quick to act, blocking the address associated with the alleged fraudsters.

At press time, the address contained tokens worth $326,000 according to Etherscan. However, it has a warning attached to it that states:

“This address received funds from an address which is involved in a RHOC token scam. Please exercise caution when interacting with this address.”

RChain further urged its community to report any person that attempts to sell them RHOC tokens from that address. Moreover, the tokens being held by that address “will not be honored upon reaching Genesis.”

KuCoin recently partnered with Arwen to debut a decentralized crypto storage service. The service brings together the enhanced security that decentralized crypto storage offers with the liquidity and speed that centralized crypto exchanges offer. And unlike previous decentralized storage methods, the new platform will rely solely on the associated blockchain for security. Thus, a crypto trader owning Bitcoin SV (BSV) tokens will rely on the BSV blockchain for security. This is a break from other platforms that rely on an entirely new blockchain for security.

KuCoin’s co-founder and CEO, Michael Gan also recently announced that his team will be updating its whitepaper, two years after it first launched.

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