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Lawyer Accuses Huobi of Operating a Cryptocurrency Exchange That’s ‘Held Accountable Nowhere’

News Feed - 2022-01-23 11:01:02

Lawyer Accuses Huobi of Operating a Cryptocurrency Exchange That"s "Held Accountable Nowhere"


Houbi Global, which is based in Seychelles, has been accused by lawyer Jonathan Levy of operating without accountability to any jurisdiction. The lawyer adds that the exchange’s physical address in the island nation is for mailing purposes only. Accountability Issues


U.S.-based lawyer Jonathan Levy has accused Huobi cryptocurrency exchange of running a decentralized global operation that “operates everywhere but is held accountable nowhere.” Levy’s accusation follows the Seychelles registered cryptocurrency exchange’s alleged intransigence which eventually led to a French national losing their funds to a Chinese fraudster.


Before the Chinese national’s disappearance along with the stolen funds, the unnamed victim had — with the aid of Ciphertrace — successfully located the fraudster’s account with Huobi. Based on the victim’s efforts, the French National police had opened an investigation as well as requested the cryptocurrency exchange’s assistance in recovering the funds.


Huobi’s Seychelles Presence


However, according to a statement released by the lawyer, the fraud victim’s attempts to recover their funds were ultimately frustrated by Houbi’s refusal to cooperate with both French and Seychelles law enforcement. He explained: Huobi Global misled the French Police and claimed they were under the jurisdiction of Seychelles. This delay allowed the criminal to escape with their loot. When the Seychelles Police finally investigated it was already too late and by their own admission, they lacked jurisdiction over the crime since Huobi’s presence in that island nation is just a mailing address.


Levy, meanwhile, points to this latest incident as another example of why authorities in Europe need to establish a crypto industry-funded “Superfund.” He said such a fund would prove to be useful to victims of crypto crime, like the the French national, whose only hope of recovering the funds now hinges on the European Union or the OECD’s intervention.


Concerning leading crypto exchanges’ ability to make sufficient contributions to any such superfund, Levy argues that platforms like Huobi (whose daily crypto volume reportedly exceeds $10 billion) and the other top ten exchanges, are well placed to make such contributions. Tags in this story Ciphertrace, Cryptocurrency Exchange, european union crypto, European Union Parliament, Huobi Exchange, Jonathan Levy, Law Enforcement


What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Crypto.com Reveals 483 Accounts Compromised in Recent Hack — $34 Million in Bitcoin, Ether Stolen EXCHANGES | 3 days ago Bitmex Acquiring German Bank to Create "Regulated Crypto Powerhouse" in Europe EXCHANGES | 4 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, Primakov Previous articleZimbabwe Signs Agreement Enabling Collection of Taxes From Crypto and E-Commerce Entities Next articleValue Locked in Defi Slides 21% in 2 Weeks, $200B TVL Still 10x Larger Than This Time Last Year Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItJoe Biden Claims Inflationary Pressure "Rests With the Federal Reserve," Praises the Fed"s "Extraordinary Support" 


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