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KuCoin Exchange Blocks Crypto Wallet Allegedly Involved in RChain Token Scam
Blockchain firm RChain informed clients that the firm suffered a scam involving an escrow transaction with counterfeit money.
Singapore-based crypto exchange KuCoin has blocked a crypto wallet that is allegedly involved in a recent RChain (RHOC) token scam, RChain wrote in a blog post on April 26.
RChain, the blockchain firm behind RHOC coin, informed its users that the company suffered a scam involving an escrow transaction containing counterfeit money.
In the apparent deal, RChain was set to send 11 million RHOC tokens to its partners who expressed an interest in putting money into an escrow account. Once the money was in escrow, RChain sent RHOC tokens to their wallet as agreed. However, after the tokens were sent, RChain found that the money in escrow was counterfeit.
Following the incident, RChain contacted KuCoin, which subsequently blocked the crypto wallet address of the alleged scammers. At press time, the address is blocked, with Etherscan warning that the address “received funds from an address which is involved in a RHOC token scam.”
The amount of RHOC tokens on the blocked account is worth around $310,000 at press time, according to data from CoinMarketCap. Trading at around $0.0283, RHOC has a market cap of $10.6 million at press time. Back in January, RHOC was worth around $2.90, and once was ranked in the top 30 projects on CoinMarketCap.
Recently, Cointelegraph reported that Canada's major cryptocurrency exchange QuadrigaCX was officially declared bankrupt after the exchange filed for creditor protection, following the loss of access to cold wallets caused by death of Quadriga’s late co-founder Gerald Cotten in December 2018.