Lawyer Accuses Huobi Of Operating A Cryptocurrency Exchange That Is “Nowhere Held Accountable” CryptoBlog
Seychelles-based Houbi Global has been accused by lawyer Jonathan Levy of operating without reporting to any jurisdiction. The lawyer adds that the physical address of the exchange in the island nation is for postal purposes only.
US attorney Jonathan Levy has accused cryptocurrency exchange Huobi of running a decentralized global operation that “operates everywhere but is held accountable nowhere”. Levy’s accusation follows alleged intransigence by the Seychelles-registered cryptocurrency exchange, which ultimately led to a French national losing his funds to a Chinese fraudster.
Prior to the Chinese national’s disappearance with the stolen funds, the anonymous victim had – with the help of Ciphertrace – managed to locate the fraudster’s account at Huobi. Based on the efforts of the victim, the French national police had opened an investigation and requested the help of the cryptocurrency exchange to recover the funds.
Presence of Huobi in the Seychelles
However, according to a statement released by the lawyer, the fraud victim’s attempts to recover his funds were ultimately thwarted by Houbi’s refusal to cooperate with French and Seychellois law enforcement. He explained:
Huobi Global misled the French police and claimed that it was under the jurisdiction of Seychelles. This delay allowed the criminals to escape with their loot. When the Seychelles police finally investigated, it was already too late and by their own admission they had no jurisdiction over the crime since Huobi’s presence in the island nation is only a postal address.
Levy, meanwhile, points to this latest incident as yet another example of why European authorities need to create a crypto industry-funded “Superfund.” He said such a fund would prove useful to victims of crypto crime, like the French national, whose only hope of recovering the funds now rests with the intervention of the European Union or the OECD.
Regarding the ability of major crypto exchanges to make sufficient contributions to such a superfund, Levy says that platforms like Huobi (whose daily crypto volume is said to exceed $10 billion) and the other top ten exchanges are well positioned to make such contributions.
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