KuCoin exchange has shared more insights amid concerns and doubts it spurred among several cryptocurrency users over its decision to revoke the partnership with Winplay (previously KuCoinPlay) marketing team earlier this week.
As partners, both entities planned one million giveaway for KuCoinPlay’s rebrand. Previously, KuCoin provided brand and domain licensing for the KuCoinPlay, while the Winplay team handled the website development and the entire operations on the site.
However, on February 18, the exchange suddenly dissolved every link with the Winplay team completely. Following the lengthy blog post by KuCoin, the decision emanated from the mismanagement of funds (embezzlement).
The Contention Between KuCoin And Winplay
Both entities began as partners in the development of KuCoinPlay as of 2018. KuCoin acknowledged that the Winplay team contributed to the early development of the exchange, saying they helped in project research, marketing, and community management services.
However, the whole drama allegedly began in July 2019, after KuCoin discovered through its investigation team that the token temporarily managed by Winplay marketing team, which belonged to their another project partner, was sold in the market without prior authorization.
Upon this finding, the crypto exchange communicated with the project staff and developer and also collected all evidence. In November, the evidence indicated that the Winplay team made illegal profits by participating in the staking of the tokens.
The Allegations Against WinPlay
Per KuCoin’s explanation, WinPlay sold and embezzled the project’s tokens, which initially were for marketing campaigns on KuCoin exchange. KuCoin warned the team after it verified the illegal behavior, apologize to the project partner, and return the illicit proceeds.
Then, not only did Winplay refused to consent that the project was misappropriated illegally, and to return the proceeds, the Winplay marketing team instead urged KuCoin to cooperate with them in suing the project, per the report.
KuCoin had to push the recent decision since the Winplay team failed to rectify their illegal conduct. Already, the exchange asked the team to dissolve all their cooperation related to digital asset custody on November 30, 2019.
Even after the contract was terminated, the team continue to KuCoin’s social media accounts, which was previously assigned to the administration, and also failed to return the project tokens for marketing campaigns.
On February 12, the WinPlay team allegedly went ahead to send emails to KuCoin users about KuCoinPlay’s rebrand to WinPlay, using KuCoin’s Sendgrid email channel without their consent, which deeply shocked them. After attempts to communicate with the Winplay team immediately, failed to hold water, KuCoin has said it will now pursue legal actions against their former partner.
Meanwhile, as noted in the earlier dissolution report, the KuCoin brand is no longer in any way associated with either WinPlay.app or KuCoinPlay.
Also, the exchange has reportedly set forth a compensation plan to users who genuinely participated in the $1 million USDT giveaway, which the former partners announced earlier this year.
Source: Coinfo mania