"COBINHOOD Exit Scam & Bankruptcy Was a Rumour" - Popo Chen

Amidst the media news of COBINHOOD crypto-exchange's filing for bankruptcy and laying off all its staff, everyone was terming it as some planned exit scam. However, I was not too convinced if it was an Exit Scam. So last week, I had raised a question in my post whether COBINHOOD is pulling an exit scam or not.

Today, COBINHOOD's co-founder Popo Chen re-appeared and wrote an open letter to explain what all had happened during this period. It appears that it was due to some disagreement from one of its investors who alleged financial misconduct based on some false info. You can read the whole detail here.

For why it wasn't explained earlier to everyone, Chen clarifies as:

Since it was misled by false info, I agreed to cooperate with any legal investigation. However, all of my access to the company was then immediately removed, including my email, slack, telegram and office badge.

However, it looks strange to me as customers belong to the company and not to one person, so customers could have been updated about the developments through any other person too. But may be, as Chen says, the incidents happened were more complicated.

Although COBINHOOD is declaring that it wasn't an Exit Scam by it, things don't look very optimistic either. The major problem is company seems to incurring major losses as there wasn't many ICO or IEO deals during the bear phase. A no-trading fee crypto exchange is bound to make losses in such a scenario of long bear phase.

But words from Chen re-kindles some hope:

I hope to deal with the current unfavorable situation as soon as possible, and come up with a plan for responsible investors, currency holders and supporters. Chen Taiyuan will not run, I am actively handling the follow-up matters every day, and I will update the processing progress with the token holder every two weeks. Thank you again for all those who care about this event and care about COBINHOOD.

I can't make out what the future holds for COBINHOOD but I wish them all good luck!