Last week, DeFi project RichQuack was allegedly subjected to a rugpull masterminded by Hotbit. The now defunct exchange callously liquidated an estimated 256 trillion $QUACK tokens (valued at roughly $153,800 at the time) belonging to $QUACK holders on PancakeSwap.

The consequences for RichQuack have been dire, as they incurred substantial losses of around $100,000 in $USDT and $QUACK, both of which mysteriously vanished from their Hotbit balance. To exacerbate matters further, RichQuack's pleas for withdrawal assistance went unanswered, leaving them in a state of uncertainty.

RichQuack and Hotbit reach consensus

After two months of persistent attempts to contact Hotbit, RichQuack confirmed that they have finally received a response. The two parties reached an agreement, and Hotbit has pledged to partially refund the affected users' balances.

Hotbit defended their actions by citing hacker attacks and system vulnerabilities that targeted various cryptocurrencies, including $BTC, $ETH, $USDT, and $SHIB. These losses, according to Hotbit, played a significant role in their decision to shut down operations. In their closure announcement, Hotbit acknowledged their inability to fully compensate users and introduced Deficit assets (DF assets) as partial compensation. They also revealed plans to utilize their remaining assets and accumulated investment returns to redress affected users.

Hotbit aims to assist with the repurchase of QUACK tokens through their trading team for redemption purposes, offering hope that they will fulfill their commitment to restoring users' balances and making affected users whole again.

Questions have arisen regarding Hotbit's intentions and practices, as their previous announcement in May about ceasing all CEX operations and urging users to withdraw their assets by June 21 now appears dubious in light of the recent events.