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Don't remind me again today

A leading exchange is collectively sued by shareholders: $4.2 billion cash-out scandal and compliance black hole exposed.

YieldWhisperer

2025-12-02 01:00:19

Abstract generation in progress

[Coin World] A leading compliance exchange has recently found itself in serious trouble. On December 2, shareholders initiated a class action lawsuit in a Delaware court, directly bringing the CEO and several prominent board members to court, accusing them of having engaged in numerous “unsavory” activities over the years.

The charges listed in the lawsuit are quite alarming: long-term concealment of KYC and anti-money laundering Compliance loopholes, covering up data breach risks, remaining silent on regulatory investigations, and cashing out $4.2 billion in stocks while the share price was inflated. Even more outrageous is that the platform discovered in January this year that hackers obtained sensitive user data through third-party customer service channels, yet they didn't publicly acknowledge this until May.

Now the shareholders not only demand huge compensation but also want to directly enter the board to share power and interfere with company policies. Coincidentally, last month this exchange just announced it would move from Delaware to Texas - it seems the timing of this lawsuit is quite subtle.

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AirDropMissed

· 15h ago

42 billion dollars trapped, data leakage concealed for half a year, this trap is too clichéd, after all, top exchanges are just like this.

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StableCoinKaren

· 15h ago

420 million USD cash out? This is what is called a "compliance" exchange, hilarious. --- Hiding data from January to May, even data leaks can be dragged out, this reaction speed is incredible. --- Moving to Texas to dodge lawsuits? That’s quite a dream. --- Both the CEO and the board of directors, this trap is quite deep. --- KYC loopholes, AML failures, how can they still dare to say they are at the top? --- Shareholders directly entering the board of directors is a bit ruthless. --- The compliance black hole has been pierced, where's the promised risk control? --- Concealing to inflate cash out, this timing is quite meticulous. --- It seems there is no real "compliance" in the crypto world exchanges, they only dare to brag once the work is done well. --- Is there still anyone who believes in the compliance promises of exchanges in 2024?

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TheShibaWhisperer

· 15h ago

This trick is too familiar, it's always cashing out first and then disappearing. 4.2 billion dollars just vanished like that? Data leak took four months to report? I would have already done a rug pull, haha. They love to put compliance in front, but the things they do behind are increasingly ruthless. Moving to Texas is probably to dodge lawsuits, this timing is quite interesting. To put it bluntly, it's just playing people for suckers after cashing out and shifting the blame to the board, the shareholders are the real victims. KYC loopholes can be hidden for so long? I think no one should be trusted.

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MetamaskMechanic

· 15h ago

$4.2 billion trap cashing out? These people really dare, playing tricks under the name of Compliance... Data leak took four months to mention, we should ask the users what they think Moving to Texas to dodge lawsuits? The timing is quite tricky They really want to enter the board to share power, the shareholders are quite ruthless... This operation is truly outrageous, it feels like the inside has long been rotten.

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LightningLady

· 15h ago

4.2 billion USD cash out? Isn't this just blatant, throwing compliance out the window?

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pvt_key_collector

· 16h ago

4.2 billion dollars cashing out? This is the so-called "Compliance", it cracks me up. --- Wait, a data breach was discovered in January but only mentioned in May? This operation is really outrageous. --- I've seen too many tricks of moving to avoid lawsuits, can Texas really be an escape? --- With both the CEO and the board of directors involved, this mess is really big. --- What happened to the promised KYC compliance? Turns out it was all just for show. --- The shareholders are really aggressive this time, directly wanting to enter the board to decentralize power. --- Hacker messing with data, CEO cashing out stocks, this exchange is truly ridiculous. --- Moving from Delaware to Texas... Could it be to evade the law? The timing is just too perfect. --- Hiding a data breach for half a year, really bold. --- That number of 4.2 billion looks really uncomfortable, where's the users' money?

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