We had requested that exchanges prevent deposits and withdraws so the illicit KMD wont be able to be sold very early in the event timeline.
Unfortunately, cryptox.pl did not do this for many hours after our request and even after we were told trades were stopped, it continue via API. We specifically asked about API trading and were assured it was stopped.
Now, it seems another half a million illicit KMD has been sold?! This is after the main chain was resumed. And I can think of only one person who would sell at 250 sats... Which means the illicit KMD deposited is still active inside cryptox's system.
Clearly, we cannot take responsibility for such delays. So, we will be setting up a direct claims process for cryptox customers to use. cryptox doesnt have enough KMD to cover the KMD on the books due to all the illicit deposits that were accepted. This means your KMD balance at cryptox isnt fully backed by real KMD. The actual percentage backing it is unknown.
However, do not worry!
Here is the plan.
1) We pick a reasonable floor price that represents the lowest high volume price that would have been had only real KMD been traded. I am thinking a price like 5000 sats. this is about what the lowest price during the panic selling and well below recent prices.
2) cryptox customers who purchased illicit KMD as evidenced by trading timestamps, would be able to make a claim for the BTC used to pay for the KMD. Now if you already withdrew from cryptox into real KMD, then of course this wont apply as you are already fully covered.
3) We verify the claim with the cryptox data and refund the BTC.
Result: cryptox customers who paid BTC for illicit KMD get back 100% of their BTC and have no loss.
It really is too bad the cryptox deposits were not turned off when we asked as all of this would have been avoided. It will take us a bit of time to get some more detailed procedure for this, but I wanted to outline the basic plan. We need to define the first and last trading timestamp that will count, eg. certainly so that trades after the mainchain resumed are not eligible.
There are some strange trading patterns as evidenced by the trade log above, so we need to reserve the right to refuse compensation for suspicious cases. We can use this thread as an appeals process in case you feel we reject your claim without basis.
We will use common sense in the determination of compensation as this can get quite complicated and would take a long time to create a formalized set of rules that cant be exploited.
Thank you dev. For Cryptox, your compliance is questionable. Let us boycott the exchange for negligence and incompetency. No one should ever do exchanges in Cryptox. They are non-compliance to the heed of the developer.
