OKcoin - illegal business/money laundering - Judge rules

[unamis76]

I think the impact won't be that big because we know that volume trading is fake/manipulated. The trader/whale only going to another exchange.
Would be different if they can't pay fine, got hacked or run away with customer money.

despite the fact that everyone knows what's going, markets run on perception and enough stupid people would panic for there to be a hefty fall and more doldrums. the whales depend on the sentiments of the dimwits to take more coins off them.

Yes, this is exactly what I meant

[1714469753]

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[1714469753]

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[nova-rider]

This is new information to me.

[uquid]

any update new about okcoin now ?

[M28MmickT]

I believe the main problem on exchanges still belong to people leaving all their bitcoins inside them, that produces most kind of problems, there is the need of strong advertising about the advantages of moving Bitcoins to websites only when it is needed for a trade or investment and not use them as store vaults.

yet some dev's want the opposite.. they want you to deposit bitcoins into exchanges. and instead of withdrawing funds to arbitrage, they want to give you some sidechain or altcoin that represents your balance to internally move between exchanges.
research : Liquid sidechain

People should totally oppose that proposition, besides it looks like the start of a fractional reserve system, the problem is the same, it can't avoid or reduce in any number the hacks they can suffer.

[Wind_FURY]

This is not surprising. I suggest checking the volume created by LTC. What is the basis of all that volume? LTC is mostly considered "dead" by the community. There is no active development, no projects built on top, no nothing and yet it has maintained a high amount of volume. Some have suggested that it is the coin of choice by the Chinese money launderers.

[mayax]

This is not surprising. I suggest checking the volume created by LTC. What is the basis of all that volume? LTC is mostly considered "dead" by the community. There is no active development, no projects built on top, no nothing and yet it has maintained a high amount of volume. Some have suggested that it is the coin of choice by the Chinese money launderers.

true...BUT the main BTC media doesnt' say a word. is it not strange?

[franky1]

This is not surprising. I suggest checking the volume created by LTC. What is the basis of all that volume? LTC is mostly considered "dead" by the community. There is no active development, no projects built on top, no nothing and yet it has maintained a high amount of volume. Some have suggested that it is the coin of choice by the Chinese money launderers.

true...BUT the main BTC media doesnt' say a word. is it not strange?

does mainstream media talk about every US tax evasion/FIAT money launder court case.. nope
does mainstream media talk about every fed reserve audit.. nope
does mainstream media talk about many things about the truth of fiat.. nope
does mainstream media explain the bait and switch tactics of the fed that have screwed everyone.. nope

most of the time it ends up in a private documentary that may be interesting and insightful enough to appear on a documentary channel some day

[mayax]

This is not surprising. I suggest checking the volume created by LTC. What is the basis of all that volume? LTC is mostly considered "dead" by the community. There is no active development, no projects built on top, no nothing and yet it has maintained a high amount of volume. Some have suggested that it is the coin of choice by the Chinese money launderers.

true...BUT the main BTC media doesnt' say a word. is it not strange?

does mainstream media talk about every US tax evasion/FIAT money launder court case.. nope
does mainstream media talk about every fed reserve audit.. nope
does mainstream media talk about many things about the truth of fiat.. nope
does mainstream media explain the bait and switch tactics of the fed that have screwed everyone.. nope

most of the time it ends up in a private documentary that may be interesting and insightful enough to appear on a documentary channel some day

the BTC market is small and I am sure the BTC media can cover subjects like "Chinese money launderers are using LTC" or Bitfinex owners do not provide any evidence about hack, IF they want( if they are not greased) ...

Regarding to your questions :   "you" want to be something different than all the aboves, right?

[marky89]

If OkCoin is in fact insolvent (I have no idea one way or another if they are), then this fact will likely become apparent in the coming weeks, as their customers attempt to withdraw.

Seems doubtful, as this story never really hit the press. Doesn't seem people made much of a fuss over it.

Whether OkCoin is solvent has always been a major question for traders. We have long suspected that OkCoin trades against their customers, and the former CTO confirmed this in a blog a year or so ago. I believe he said that the exchange's accounts used un-backed (unlimited) money as well. He also said the proof-of-reserves audit done a couple years ago was faked.

Still, no one seems to care.... sigh.

[mayax]

If OkCoin is in fact insolvent (I have no idea one way or another if they are), then this fact will likely become apparent in the coming weeks, as their customers attempt to withdraw.

Seems doubtful, as this story never really hit the press. Doesn't seem people made much of a fuss over it.

Whether OkCoin is solvent has always been a major question for traders. We have long suspected that OkCoin trades against their customers, and the former CTO confirmed this in a blog a year or so ago. I believe he said that the exchange's accounts used un-backed (unlimited) money as well. He also said the proof-of-reserves audit done a couple years ago was faked.

Still, no one seems to care.... sigh.

the BTC "press" is greased and it depends on these exchangers. they are pumping the money for "advertising" and that's why you can hardly see negative things about them.

[Betwrong]

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 !

Well, if they really were doing that inflating thing they probably got what they deserve. In all it's bad that Bitcoin is on the news with negative shade again.

Buy the way the punishment, a fine of 627,569 Yuan (around $94,000), which has been ordered by a provincial court for Okcoin to pay, is not as big as I expected taking into account the money laundering accusation.

[calkob]

Sounds like someone is in trouble and could be in for a hefty jail term.......

[universe_]

This is not surprising. I suggest checking the volume created by LTC. What is the basis of all that volume? LTC is mostly considered "dead" by the community. There is no active development, no projects built on top, no nothing and yet it has maintained a high amount of volume. Some have suggested that it is the coin of choice by the Chinese money launderers.

chinese people like their coins, thats where the volume comes from i guess though it is definitely not a good thing as it is just a pump and nothing else

[Gohs]

This is not surprising. I suggest checking the volume created by LTC. What is the basis of all that volume? LTC is mostly considered "dead" by the community. There is no active development, no projects built on top, no nothing and yet it has maintained a high amount of volume. Some have suggested that it is the coin of choice by the Chinese money launderers.

The mere fact that LTC costs more than $2 proves that some still use it, probably in China. You can't blame OKcoin for the volume generated by LTC.

[Haliburton]

This is not surprising. I suggest checking the volume created by LTC. What is the basis of all that volume? LTC is mostly considered "dead" by the community. There is no active development, no projects built on top, no nothing and yet it has maintained a high amount of volume. Some have suggested that it is the coin of choice by the Chinese money launderers.

The mere fact that LTC costs more than $2 proves that some still use it, probably in China. You can't blame OKcoin for the volume generated by LTC.

Litecoin seems like the coin that never will ever die. It was the second to bitcoin and it looks like it will last just as long as it's predecessor.
I don't even like calling it an alt coin because it is in a different category all it's own.

[nova-rider]

OKcoin, bitfinex, and now several complaints regarding coinbase. Some safe exchange left?

[davis196]

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 !

Unfortunately every cryptocurrency trading platform is vulnerable to such "government" attacks.

Politics can hit bitcoin anytime they want.

Bitcoin will never gain enough trust...

[BTCLovingDude]

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

i have been seeing this topic being bumped from now and then and yet i don't see anything happening to Okcoin the site is still up and running, and the exchange volume is still high.

if the Judge has ruled against them why are they still active?!!

[nelsledma]

I’m glad that people got busted. Business fronts like these need to be crushed so that all the legit companies can come forward. Then the stigma of bitcoin being an “illegal commodity” will be silenced. These people are what help fuel the bad stigma around bitcoin and it’s users.

[gentlemand]

i have been seeing this topic being bumped from now and then and yet i don't see anything happening to Okcoin the site is still up and running, and the exchange volume is still high.

if the Judge has ruled against them why are they still active?!!

I believe it was a civil case and they probably got fined. Case closed. If it was criminal then there'd be more squealing on here.