Chinese National Media Alleges OKEx Is Illegally Trading Bitcoin Futures in the Country

  • Chinese national media recently claimed OKEx, one of the largest cryptocurrency exchanges, has been illegally trading bitcoin futures contracts in the country.
  • The report cites two alleged investors, Yang and Zhao, who've used the cryptocurrency exchange's services.

China National Radio (CNR), in its “Voice of China” podcast, has recently alleged that cryptocurrency exchange OKEx has been illegally trading bitcoin futures contracts in the country, following a ban imposed by the government last fall.

Through a piece titled “Exchanges that still prevail after the ban”, CNR claimed OKEx, a Hong Kong-based company launched by OKCoin, one of the “Big Three” trading platforms in China before the crackdown, is offering said contracts to mainland Chinese investors.

The media outlet cites two sources, Yang and Zhang, who reportedly used OKEx’s services in the country. According to the two investors, OKEx is operating in Beijing for Chinese users, and has only moved its headquarters to Hong Kong on paper. The company is, per the report, registering itself in Belize to dodge regulations.

The investors allege OKEx is trading bitcoin futures and giving investors the option to use leverage on these, while calling them “contract transactions.” The report reads (roughly translated):

“Mr. Yang, who also conducts contract transactions on the platform, told reporters that even though they are called "contract transactions," they actually conduct digital currency futures transactions. They can use leverage to multiply the investment results…”

CNR's report

The report further adds OKEx runs a “point to point” operation that lets investors pay using their Alipay or Wechat accounts, bypassing China’s crypto to fiat transaction ban. The cryptocurrency exchange’s technological developments, per CNR, are still managed by the OKCoin team.

CNR notes that Yang and other investors have reported OKEx to the country’s authorities, and were told that the Financial Bureau was working on the case. It’s worth noting the Chinese media outlet’s report is part of a cryptocurrency investigation series it’s broadcasting, that yesterday claimed initial coin offering (ICO) operators are still selling tokens to Chinese investors.

Last fall, China banned cryptocurrency exchanges from the country citing “financial risks.” As recently covered, the country’s largest website have removed cryptocurrency-related ads from their platforms.

At press time, OKEx is the second largest cryptocurrency exchange by trading volume, processing $1.9 billion in the last 24-hour period.

French Crypto Exchange Coinhouse Suffers Phishing Attack, User Names and Emails Accessed

  • French crypto exchange Coinhouse suffered a phishing attack on Sept. 12
  • Hackers gained access to user names and email addresses.

French cryptocurrency exchange Coinhouse says that it underwent a phishing attack, during which hackers gained access to its client mail distribution database. 

Coinhouse Phishing Scam

According to tweets published to the official Coinhouse account , hackers managed to gain access to the client database containing names and email addresses. The hackers then used this information to begin phishing attacks against users, leading Coinhouse to advise its customers not to click or respond to emails about the exchange. 

Coinhouse hack

Coinhouse crypto hack

Coinhouse says they responded to the hack by immediately switching the platform to a maintenance mode, thereby preventing the hackers from gaining access to user funds. The exchange claims they were able to contain the hack and promptly sent an email to their customer base explaining how to avoid the phishing attack.

However, the exchange acknowledged that users may have already been affected by the hack. They recommended any clients who gave credentials to the scam email to change their identifiers on other websites in order to prevent any further loss. 

Coinhouse french crypto hack

In addition, Coinhouse says they will require all users to change their password when the exchange comes back online. 

Featured Image Credit: Photo via Pixabay