Lawyers Allege Huobi Runs Crypto Exchange With ‘Nowhere to Go’ – Bitcoin News

Seychelles-based Houbi Global was accused by lawyer Jonathan Levy of operating without responsibility for any jurisdiction. The lawyer added that the physical address of the exchange in the island nation is for mailing purposes only.

Accountability issues

U.S. attorney Jonathan Levy accused the Huobi cryptocurrency exchange of running a decentralized global operation that “operates anywhere but has no responsibility anywhere.” Levy’s allegations follow the alleged intransigence of a Seychelles-registered cryptocurrency exchange that ultimately resulted in a French national losing his funds to a Chinese fraudster.

The unnamed victim, with the help of Ciphertrace, managed to locate the fraudster’s account on Huobi before the Chinese national disappeared with the stolen funds. Based on the efforts of the victims, the French National Police have launched an investigation and asked the cryptocurrency exchange to assist in recovering the funds.

Huobi Presence in Seychelles

However, attempts to recover funds from fraud victims were ultimately thwarted by Houbi’s refusal to cooperate with French and Seychelles law enforcement, according to a statement released by lawyers. He explained:

Huobi Global misled French police, claiming they were under the jurisdiction of the Seychelles. This delay allows criminals to escape with their booty. By the time the Seychelles police finally investigated, it was too late, and by their own admission, they lacked jurisdiction over the crime, as Huobi’s presence in the island nation was merely a mailing address.

Meanwhile, Levy pointed to this latest incident as another example of the need for European authorities to create a “super fund” funded by the crypto industry. Such a fund, he said, would prove useful to victims of crypto crime, such as the French national, whose only hope of getting the money back now lies with the European Union or the European Union. OECDintervention.

Regarding the ability of leading cryptocurrency exchanges to contribute enough to any such superfund, Levy believes that platforms like Huobi (which reportedly has over $10 billion in daily cryptocurrency trading volume) and the other top 10 exchanges This contribution can be well made.

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Terence Chimwala

Terence Zimwara is an award-winning journalist, author and author from Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.