The decentralized crypto trading platform WOO X is severely insolvent and is suspected of misappropriating user assets

2023-05-23 15:44:15
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ChainCatcher news, investigative journalist Chris Brunet published an investigative article on the decentralized crypto trading platform WOO X, questioning the current financial health of WOO X and suspecting that the platform has misappropriated user assets for investment, leading to insolvency.

The article points out that WOO X has a hedge fund called Kronos Research, which is highly similar to Alameda. Although the user terms state that WOO X will not use user deposits for speculation, Chris Brunet later discovered that, according to the debt-to-asset ratio, WOO X's assets currently cover only about 80% of the deposits, with 45% of those assets consisting of Token WOO. Furthermore, according to third-party data from Nansen, WOO X's treasury is actually composed of 76% WOO, significantly higher than the data it actively disclosed, resulting in the actual value of reserve assets being far less than user deposits. (source link)

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