OKcoin - illegal business/money laundering - Judge rules

[mayax]

Okcoin, the biggest Bitcoin exchanger(aprox 80% from market) has been found guilty of unlicensed money transmitter(similar license for China) and other illegalities.

http://8btc.com/thread-37836-1-1.html

The Higher People's Court of Heilongjiang Province, rulled that Okcoin business is illegal because they don't have a proper license.
Okcoin company declared that they will only offer:  technology development, transfer of technology, technical services, technical marketing, consulting and investment management.
Trading bitcoin for profit-making purpose is beyond the range permitted by the administrative authorities.  They would need many other licenses.

More, the judge said that Okcoin favorize the criminals for laundering money.

Okcoin is well know for their shaddy business like fake volumes and price manipulation.

Even Lee, the BTC China CEO  said that a while ago "... Okcoin and Huobi are known for inflating trading volumes artificially, basically selling from left hand to the right hand."

http://www.coindesk.com/chinese-bitcoin-exchange-okcoin-accused-faking-trading-data/

http://bitcoinpricelive.com/chinese-bitcoins-crash-market/


Their clients should be aware that OKcoin can be closed anytime.Don't keep your funds in Okcoin !

[marky89]

Thanks for posting this! I try to comb through 8btc but it can be quite the headache when you don't read Mandarin.

I've always thought Okcoin was shady. First, it was volume pumping allegations, then bucket shop/trading against users/skipping orders allegations. Then the CTO admitting that they gamed the proof-of-reserves audit, and that they trade against users with money unbacked by real assets. They have a real shady corporate structure too, shady people involved (criminals).

[mayax]

Thanks for posting this! I try to comb through 8btc but it can be quite the headache when you don't read Mandarin.

I've always thought Okcoin was shady. First, it was volume pumping allegations, then bucket shop/trading against users/skipping orders allegations. Then the CTO admitting that they gamed the proof-of-reserves audit, and that they trade against users with money unbacked by real assets. They have a real shady corporate structure too, shady people involved (criminals).

can you imagine that Okcoin "owns" 80% from BTC trades?    The world is up side down. The fraudsters are ruling BTC and the people are OK with that.

 They keep depositing the money into a DEEP shit whole like Bitfinex even Bitfinex stole their funds; they use unlicensed exchangers and then...they are winning on forums that their money are gone and someone must help them

[dothebeats]

They are infamous for faking trade volumes and other shady stuff just to garner a large following from traders. Up to now, I'm wondering how they are still operating given that, well, their license doesn't cover anything such as trading and exchanging coins to USD/CNY/other currencies. It's time to pull out your assets in that shady exchange before they create another con ala-Gox.

[Sir Alpha_goy]

Okcoin, the biggest Bitcoin exchanger(aprox 80% from market) has been found guilty of unlicensed money transmitter(similar license for China) and other illegalities.

http://8btc.com/thread-37836-1-1.html

The Higher People's Court of Heilongjiang Province, rulled that Okcoin business is illegal because they don't have a proper license.
Okcoin company declared that they will only offer:  technology development, transfer of technology, technical services, technical marketing, consulting and investment management.
Trading bitcoin for profit-making purpose is beyond the range permitted by the administrative authorities.  They would need many other licenses.

More, the judge said that Okcoin favorize the criminals for laundering money.

Okcoin is well know for their shaddy business like fake volumes and price manipulation.

Even Lee, the BTC China CEO  said that a while ago "... Okcoin and Huobi are known for inflating trading volumes artificially, basically selling from left hand to the right hand."

http://www.coindesk.com/chinese-bitcoin-exchange-okcoin-accused-faking-trading-data/

http://bitcoinpricelive.com/chinese-bitcoins-crash-market/


Their clients should be aware that OKcoin can be closed anytime.Don't keep your funds in Okcoin !

Aren't fake volumes and/or price manipulation standard operating procedure for all Bitcoin related exchanges?

[franky1]

time for another "bank run"

[marky89]

Okcoin, the biggest Bitcoin exchanger(aprox 80% from market) has been found guilty of unlicensed money transmitter(similar license for China) and other illegalities.

http://8btc.com/thread-37836-1-1.html

The Higher People's Court of Heilongjiang Province, rulled that Okcoin business is illegal because they don't have a proper license.
Okcoin company declared that they will only offer:  technology development, transfer of technology, technical services, technical marketing, consulting and investment management.
Trading bitcoin for profit-making purpose is beyond the range permitted by the administrative authorities.  They would need many other licenses.

More, the judge said that Okcoin favorize the criminals for laundering money.

Okcoin is well know for their shaddy business like fake volumes and price manipulation.

Even Lee, the BTC China CEO  said that a while ago "... Okcoin and Huobi are known for inflating trading volumes artificially, basically selling from left hand to the right hand."

http://www.coindesk.com/chinese-bitcoin-exchange-okcoin-accused-faking-trading-data/

http://bitcoinpricelive.com/chinese-bitcoins-crash-market/


Their clients should be aware that OKcoin can be closed anytime.Don't keep your funds in Okcoin !

Aren't fake volumes and/or price manipulation standard operating procedure for all Bitcoin related exchanges?

Maybe for major Chinese exchanges. Huobi has definitely been accused of this as well. But if you compare Okcoin or Huobi's volume to Western exchanges, it seems obvious who is really pumping volume numbers. Okcoin was claiming earlier this year that the entire tradeable supply of Bitcoin was being traded every few days on their exchange. Give me a break. Not nearly enough algos running on Okcoin to even begin to make those claims.

That said, I think Bitstamp inflates its volume numbers.

[Sir Alpha_goy]

Okcoin, the biggest Bitcoin exchanger(aprox 80% from market) has been found guilty of unlicensed money transmitter(similar license for China) and other illegalities.

http://8btc.com/thread-37836-1-1.html

The Higher People's Court of Heilongjiang Province, rulled that Okcoin business is illegal because they don't have a proper license.
Okcoin company declared that they will only offer:  technology development, transfer of technology, technical services, technical marketing, consulting and investment management.
Trading bitcoin for profit-making purpose is beyond the range permitted by the administrative authorities.  They would need many other licenses.

More, the judge said that Okcoin favorize the criminals for laundering money.

Okcoin is well know for their shaddy business like fake volumes and price manipulation.

Even Lee, the BTC China CEO  said that a while ago "... Okcoin and Huobi are known for inflating trading volumes artificially, basically selling from left hand to the right hand."

http://www.coindesk.com/chinese-bitcoin-exchange-okcoin-accused-faking-trading-data/

http://bitcoinpricelive.com/chinese-bitcoins-crash-market/


Their clients should be aware that OKcoin can be closed anytime.Don't keep your funds in Okcoin !

Aren't fake volumes and/or price manipulation standard operating procedure for all Bitcoin related exchanges?

Maybe for major Chinese exchanges. Huobi has definitely been accused of this as well. But if you compare Okcoin or Huobi's volume to Western exchanges, it seems obvious who is really pumping volume numbers. Okcoin was claiming earlier this year that the entire tradeable supply of Bitcoin was being traded every few days on their exchange. Give me a break. Not nearly enough algos running on Okcoin to even begin to make those claims.

That said, I think Bitstamp inflates its volume numbers.

ALL ARE MANIPULATING.

They have the most to gain.

"Fees" are collected if a coin goes up or down.

They own the Bitcoin world.

[marky89]

ALL ARE MANIPULATING.

They have the most to gain.

"Fees" are collected if a coin goes up or down.

They own the Bitcoin world.

I hear ya. I think more than anything, many exchanges engage in bucket shop behavior (stop running to liquidate traders, etc). I think Bitfinex has been heavily involved in this historically. Okcoin and Huobi also.

However, I think there are degrees to which exchanges are manipulating, and Okcoin and Huobi are the worst offenders. Followed by Bitfinex. Bitfinex has always been very, very shady. Now there is just absolutely no reason to risk keeping funds there.

[mayax]

Okcoin, the biggest Bitcoin exchanger(aprox 80% from market) has been found guilty of unlicensed money transmitter(similar license for China) and other illegalities.

http://8btc.com/thread-37836-1-1.html

The Higher People's Court of Heilongjiang Province, rulled that Okcoin business is illegal because they don't have a proper license.
Okcoin company declared that they will only offer:  technology development, transfer of technology, technical services, technical marketing, consulting and investment management.
Trading bitcoin for profit-making purpose is beyond the range permitted by the administrative authorities.  They would need many other licenses.

More, the judge said that Okcoin favorize the criminals for laundering money.

Okcoin is well know for their shaddy business like fake volumes and price manipulation.

Even Lee, the BTC China CEO  said that a while ago "... Okcoin and Huobi are known for inflating trading volumes artificially, basically selling from left hand to the right hand."

http://www.coindesk.com/chinese-bitcoin-exchange-okcoin-accused-faking-trading-data/

http://bitcoinpricelive.com/chinese-bitcoins-crash-market/


Their clients should be aware that OKcoin can be closed anytime.Don't keep your funds in Okcoin !

Aren't fake volumes and/or price manipulation standard operating procedure for all Bitcoin related exchanges?

Maybe for major Chinese exchanges. Huobi has definitely been accused of this as well. But if you compare Okcoin or Huobi's volume to Western exchanges, it seems obvious who is really pumping volume numbers. Okcoin was claiming earlier this year that the entire tradeable supply of Bitcoin was being traded every few days on their exchange. Give me a break. Not nearly enough algos running on Okcoin to even begin to make those claims.

That said, I think Bitstamp inflates its volume numbers.

all the exchangers are doing this(Bitstamp is well known for fake volumes... ). I personally know someone from a big exchanger and this is the standard procedure. even, it's big, they have a lot of fake transactions just to show that they have BIG volume, that they have many clients and so on. these things attract new clients. a "ghost" exchanger with few trades will not be used.

also, the fake volumes are good for price manipulation...the exchangers are not earning from their fees but from other shits

[European Central Bank]

wasn't this the place that turned out to be keeping their cold storage in the ceo's girlfriend's moms closet?

I've read elsewhere that this is a civil case so it's nowhere near as alarming as if they were feeling the full force of criminal law.

regardless of that, i'd love to know how legit any of these Chinese exchanges are and whether anyone in the government is paying attention. one curious official might shut them all down in one afternoon.

bitcoin would take a huge knock if these places went away but it would probably show us how fake they were in the long run.

[brian damage]

wasn't this the place that turned out to be keeping their cold storage in the ceo's girlfriend's moms cupboard?

I've read elsewhere that this is a civil case so it's nowhere near as alarming as if they were feeling the full force of criminal law.

regardless of that, i'd love to know how legit any of these Chinese exchanges are and whether anyone in the government is paying attention. one curious official might shut them all down in one afternoon.

Not long ago the Chinese government started allowing direct deposits from Chinese bank accounts into Chinese exchanges. If it was considering shutting all the exchanges down I don't think it would have allowed direct deposits. Allowing those direct deposits legitimised exchanges in China.

[illyiller]

wasn't this the place that turned out to be keeping their cold storage in the ceo's girlfriend's moms closet?

I believe the story is that Star Xu (CEO) gave the private keys to his mother for safekeeping. Pretty sure it came from the former CTO.

I've read elsewhere that this is a civil case so it's nowhere near as alarming as if they were feeling the full force of criminal law.

Yeah it's chump change anyway, 600k yuan. But it does make me wonder if it could lead to further investigations into their operations.

regardless of that, i'd love to know how legit any of these Chinese exchanges are and whether anyone in the government is paying attention. one curious official might shut them all down in one afternoon.
 
bitcoin would take a huge knock if these places went away but it would probably show us how fake they were in the long run.

Agreed. The government could purge them all instantly if they felt threatened.

[European Central Bank]

Not long ago the Chinese government started allowing direct deposits from Chinese bank accounts into Chinese exchanges. If it was considering shutting all the exchanges down I don't think it would have allowed direct deposits. Allowing those direct deposits legitimised exchanges in China.

but does that mean anything's been formalized? it might be something they can revoke any second they feel like doing so. they didn't hang around in late 2013 when it looked like people were starting to use it as an actual currency.

[Sir Alpha_goy]

wasn't this the place that turned out to be keeping their cold storage in the ceo's girlfriend's moms closet?

I've read elsewhere that this is a civil case so it's nowhere near as alarming as if they were feeling the full force of criminal law.

regardless of that, i'd love to know how legit any of these Chinese exchanges are and whether anyone in the government is paying attention. one curious official might shut them all down in one afternoon.

bitcoin would take a huge knock if these places went away but it would probably show us how fake they were in the long run.

They are as legit as all the American ones.....

[European Central Bank]

They are as legit as all the American ones.....

uh, like itbit with their trust charter under new York banking law with the New York State Department of Financial Services monitoring their every move and demanding regular audits? the first one issued to anyone since 2008 and it took over a year to obtain?

yeah. I heard you can get one of those for 0.001 btc if you slip it to the right senator. I might pick up one myself tonight to impress the girls.

[mayax]

the warning is very clear. DO NOT keep your funds with Okcoin.

[tulipbubble]

aprox 80% from market?

I think this figure is exaggerating, okcoin's figure is fake and most volume is generated by robots, 80% is fake.

[unamis76]

So the court ruled they're illegal, but they keep operating? If it was elsewhere (America, as an example, and especially in New York), they'd probably be having a hard time right now

As for money laundering, there must be proof of that... I'd be curious to see it.

They keep depositing the money into a DEEP shit whole like Bitfinex even Bitfinex stole their funds; they use unlicensed exchangers and then...they are winning on forums that their money are gone and someone must help them

Weren't they licensed (or in the process of acquiring licenses)?

Anyways, Mt. Gox was supposedly licensed too, and we all know what happened...

Aren't fake volumes and/or price manipulation standard operating procedure for all Bitcoin related exchanges?

Probably. I'd like to see real data on this. I'm afraid we'll never have it.

aprox 80% from market?

I think this figure is exaggerating, okcoin's figure is fake and most volume is generated by robots, 80% is fake.

Selling from left hand to right hand, as it says on the OP...

[Pursuer]

I think the question here, that we should care about is that how much do you think it can affect the price.

I know that OKCoin was the biggest Chinese exchange that existed. but also I remember that their price did not really have any big effect on bitcoin price since a while back when the price was rising towards the moon, price on OkCoin was already a great deal above dollar value and it didn't seem to affect bitcoin price in any positive way.

so what do you guys think?