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.

Blockchain Analysis Says Extremely Unlikely That Satoshi Moved His Bitcoin on May 20

Michael LaVere

An analysis of Bitcoin’s blockchain suggests that it is highly unlikely that the early miner who moved 40 BTC on Wednesday was Bitcoin’s mysterious creator Satoshi Nakamoto. 

According to an update by Twitter bot "Whale Alert", 40 BTC was transferred on May 20 from a wallet that has been dormant since 2009, leading to speculation that the funds belonged to Satoshi Nakamoto.

The transacted coins were originally mined on February 9, 2009, shortly after the creation of Bitcoin’s genesis block the month before. 

However, analysis of bitcoin’s blockchain has revealed the transacted coins moat likely did not belong to Satoshi.

Castle Island Ventures partner and Coin Metrics Co-Founder Nic Carter took to Twitter to explain his analysis:

And here is Carter explaining what he means by Patoshi Blocks:

He also pointed out:


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