[Notice] DUCATO HQ Announcement : Statement on the postponement of token swap procedures of a Joint presentative Dong-Hyuk Lee(David Lee)

Hello, I am Dong-Hyuk Lee(David Lee), a joint representative of DUCATO HQ.

First of all, I would like to apologize again to those who suffered severe damage from the leak of 3.9 million DUCATO tokens (hereinafter referred to as the “leakage accident”) from the wallet owned by Delio, a partner of DUCATO HQ, on August 14, 2021.

Delio is a corporation managed by CEO Sang-Ho Jung(James Jung), another joint representative of DUCATO HQ. It is a major partner of DUCATO HQ, but they are separate corporations. Therefore, Delio is responsible for the cause of the accident and the damage.

Nevertheless, DUCATO HQ has made a lot of efforts and measures to resolve the accident for the successful settlement of the DUCATO token. We have been pushing to swap from leaked tokens to newly issued tokens in cooperation with the Coinone Exchange. It was a solution proposed by CEO Sang-Ho Jung(James Jung) to Coinone immediately after the leak, and I also agreed, so I cooperated with Coinone as a joint representative of DUCATO HQ.

However, shortly after the announcement was made on October 7th that Coinone would conduct the swap on the next day, CEO Sang-Ho Jung(James Jung) asked Coinone to quit because the swap work was conducted without his consent, so Coinone informed me that they had no choice but to suspend it.

Upon receiving the notification from Coinone on October 7, I asked CEO Sang-Ho Jung(James Jung) to canceled the request to suspend the swap of DUCATO tokens, but CEO Sang-Ho Jung(James Jung) only mentioned that it was necessary to review again whether to proceed or not. In response, I notified CEO Sang-Ho Jung(James Jung) of the necessity of the DUCATO token swap again on October 13, but he has not responded so far.

To minimize the damage of holders caused by the accident, I have discussed normalization measures with Coinone, Bittrex, and other exchanges. For the prompt token swap, DUCATO HQ has completed all the preparations and currently waiting.

As a joint representative of DUCATO HQ, I will make every effort to minimize the damage caused by the accident with our DUCATO team members.

Dong-Hyuk Lee(David Lee), Joint Representative of DUCATO HQ