China’s BKEX Employees Imprisoned for Illegal Crypto Gambling: A Shocking Legal Ruling

A recent ruling from a Chinese court has sent shockwaves through the cryptocurrency community, revealing critical issues regarding compliance and legality in crypto trading. The People’s Court of Pingjiang County, Hunan Province, found that the cryptocurrency exchange BKEX engaged in illegal gambling activities through its contract trading platform. The judgment led to prison sentences for multiple employees involved in facilitating unauthorized betting.

In its ruling dated January 29, the court stated that BKEX’s trading functionalities acted as a betting platform, which is considered illegal under Chinese law. Notably, the platform allowed users to place bets using the stablecoin USDt (USDT) while enabling high leverage of up to 1,000x. This disturbing practice attracted significant attention, as it included wagers on the price fluctuations of major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).

According to the court documents, the operations of BKEX were structured in such a way that they functioned like an online casino. Moreover, it was noted that the platform had amassed over 270,000 users and generated substantial profits exceeding 54.7 million USDT before government intervention. The founder of BKEX, Ji Jiaming, reportedly took drastic measures to avoid oversight by repeatedly changing the company’s registration.

The crackdown on BKEX is part of a broader effort by the Chinese government to impose strict regulations on cryptocurrency-related activities. Over the years, China has implemented multiple bans to curb what it perceives as a threat to financial stability. These initiatives have included prohibitions against banks facilitating crypto transactions, banning ICOs, and enforcing stringent regulations on trading and mining operations.

As the legal fallout unfolds, the consequences for BKEX employees have become quite significant. In total, eight individuals were sentenced to various prison terms and substantial fines for their roles in the operations. For example, Zheng Lei, a former wallet engineer, received a sentence of two years and one month, alongside a fine of 150,000 yuan. His assets amounting to 1.34 million yuan were also confiscated.

This situation serves as a stark reminder of the intricate legal landscape surrounding cryptocurrencies, especially in jurisdictions with stringent regulations like China. It highlights the urgent need for compliance and a thorough understanding of legal parameters when engaging in cryptocurrency trading.

Last News

Read Next

Want to learn even more about NFTs?

Sign up for the 👇Newsletter