Bitcoin over-the-counter trading turmoil: players are surrounded by nearly 300 million yuan

category:Internet
 Bitcoin over-the-counter trading turmoil: players are surrounded by nearly 300 million yuan


According to a survey conducted by Beijing News, the two bitcoin brickmovers involved in the case of illegal absorption of public deposits were Zhou Yi, 35, from Lishui, Zhejiang Province, and Li Xiang, 30, from Boli County, Heilongjiang Province. They circled over 7,000 bitcoins from more than 100 bricklayers in the Wechat group by futures-like trading and currency rebate. Among them, the most miserable one was swept away more than 600 bitcoins, losing nearly 30 million.

According to players, less than 90% of the more than 7,000 bitcoins involved in this case occurred in the interest-return business. The bitcoins lent to Zhou Yi and Zhou Yi failed to be recovered, and more than 10% did not receive money because they participated in their futures-like transactions.

At present, the first batch of players have reported cases, and the Binjiang District Public Security Bureau of Hangzhou has investigated the case of Zhou Yi and others illegally absorbing public deposits. In response to the current progress of the case, Xixing Police Station of Binjiang District of Hangzhou responded to reporters of the Beijing News on May 21 that Zhou Yi and Li Xiang had been detained and would continue to investigate.

Weixin QQ Group Circle Acquaintances

Low Buy, High Sell, Make Various Platforms Differential Price Profit, Someone Makes Million Years

Almost all the cases of Bitcoin illegally absorbing public deposits in Hangzhou occurred in the two Wechat groups of Bitcoin Shop and Better Tomorrow. Zhou Yi and Li Xiangzhi are traders in Weixin Group. They circled a group of acquaintances by virtue of the goodwill established in the past two years and the price advantage established by the low-price futures.

The specific transaction process is that if buyer A thinks the prices of Zhou Yi and Li Wan are reasonable, he will chat with Weixin or QQ privately and transfer the money to the designated bank account after confirmation. One or two days later, Zhou Yi sent Bitcoin to As designated address. A Through the address of his wallet, I see the received bitcoin.

In Bitcoin trading, everyone has their own Bitcoin address, which can be transferred to each other. Bitcoin transactions must be confirmed six times before they can be stored in blocks.

Zhang Ming (a pseudonym) is a acquaintance in the Weixin group of the pancake shop. He told reporters, Before Zhou Yi and Li wanted to join the group, I had been trading in thepancake shopgroup for more than a year. Later, I observed them in the group for half a year, and found that they were still reliable. I first traded with them last summer and then bought them three bitcoins a week until they lost touch in April.

He recalls that the amount of each transaction is about 23 million yuan, and the cumulative volume of transactions in nearly a year is over 100 million yuan. The price of Bitcoin is very low, and I made nearly one million yuan this year.

There are a lot of Bitcoin Wechat trading groups like Biscuit Shop and Better Tomorrow. After the closure of the Bitcoin Exchange in China, many Bitcoin bricklayers turned to Wechat Group and QQ Group to conduct one-to-one online transactions with zero handling fees. Such groups are often acquaintances circle, with a certain value of trust, can be launched first pay, then pay money trading mode. They mainly depend on wandering among the platforms and earning the price difference between platforms to make profits.

According to the Beijing News, there are still many Weixin groups involved in Bitcoin over-the-counter transactions, but the group name will not refer to Bitcoin, but use such codes as pancake and Wutong. Among hundreds of people, traders will directly bid for 39 250 for 10 and 40250 for 20, which means 10 BTCs for 39250 yuan per unit price and 20 BTCs for 40250 price. If someone has an intention to buy, they will talk to the trader in private.

However, it is not easy to get into the above-mentioned Wechat group. It is necessary to provide personal identity card/passport information and obtain group owners guarantee before entering.

When a reporter applies for a Bitcoin Wechat Group as a trader, the Wechat Master tells reporters that two conditions need to be met: first, to provide the so-called KYC information of the currency circle to the Master, i.e. the positive and negative sides of the ID Card/passport, and three photos of the Master holding the ID Card/passport; second, to gain the trust of the Master, so that he is willing to act as a guarantee to pull you into the group.

Because I pulled you into the group, which is equivalent to giving you a guarantee, in case you run away with other peoples money, you have to find you based on this information. The above group owner representation.

Class Futures Trading Model

After 1-2 days of receipt, the unit price of the currency is more than 100 yuan cheaper than the real-time transaction.

Unlike the one-hand-in-one-hand-in-coin trading model, Zhou Yi and his two sellersfutures are issued after 1-2 days of receipt. On average, a Bitcoin is 100-150 yuan cheaper than a real-time transaction. Many players told reporters, The price is very attractive, many people booked in advance, and then find the next house to make the difference.

It is this kind of futures trading mode based on certain price advantage that makes Zhou Yi and Li want to be popular rapidly in the circle. It is not common in the circle to make such a large deal with strangers who have never met before, or to pay first, then pay money.

Zhang Ming was an early brickmover who came into contact with Bitcoin over-the-counter transactions. His first contact with over-the-counter transactions was in 2017. He told reporters that after observing Zhou Yi and Li Xiang for nearly two years, he found that they were able to deliver large quantities of goods in groups in a timely manner, without any problems before they felt that they had a good reputation and began to trade with them.

Bitcoin OTC traders with certain channels and reputation in the circle are in the home position in the supply chain of Bitcoin, serving other bricklayers and collecting guarantee service fees or trading spreads for profit.

Because the market of Bitcoin trading platforms is different all over the world, there are also some differences in prices, bricklayers wander among the platforms and earn the difference between platforms to make profits. Specific forms of brick removal can be divided into: the brick removal between foreign platforms and domestic platforms; and the brick removal between domestic platforms.

Zhang Ming disclosed that after buying 35 bitcoins in Weixinqun in 2017, he was sure that the price he bought was lower than that of Bithumb, Koreas largest exchange, so he sold them in Bithumb in time and made a one-time profit of $35,000.

In the later period, Zhou Yi did not often appear in the group. Li wanted to play Zhou Yis next role. From Zhou Yis side, he took Bitcoins and sold them in the group. A coin would be on average tens of dollars more expensive than Zhou Yi. Zhang Ming disclosed that the remittance account is Zhou Yis designated bank card number. Li wanted to help Zhou Yi count the number of transactions.

Bait for lending and selling interest

Nearly 90% of the players take part in the interest-paying business of borrowing money and receive interest of 100 yuan per day.

In addition to the above-mentioned bitcoin futures transactions, Zhou and Yi also launched a currency rebate business, that is, to rent bitcoin from Wechat group acquaintances, and promised to pay high interest. It is known that the daily interest of a single bitcoin can reach 100-120 yuan.

Zhang Ming disclosed that less than 90% of the more than 7,000 bitcoins involved in the case were for daily interest. They took the initiative to put the bitcoins in their hands. Finally, they could not be retrieved because they ran away, and more than 10% of them did not get the money because they participated in the futures like transaction.

In addition, some players in this case told reporters that they had bought Bitcoin money for Zhou Yi before, but at the beginning of the coin issuance time, Zhou Yi and Li Xiang also asked them, Are the coins urgently needed? There arent many coins available. If you are not in a hurry, lend me the money, and I will give you interest every day.

However, according to reporters, most of these players did not accept the return of money, but urged them to issue money as soon as possible. But after many times of urging, Zhou Yi and Zhou Yi just transferred a compensation to the tightly pressed customer Wechat in private, which means the currency will be issued immediately, and then wait.

Player Wang Ping (anonymous) told reporters that on April 5, he also received a compensation of 700 yuan. I know that other people also received a compensation at that time, some hundreds of dollars, some thousands, but then the money did not change, the money did not issue again. Players who buy money later do not receive the so-called compensation.

From Good Word-of-mouth to Lost Couplet

Zhou Yizeng Laqun explained that he lost his connection after being informed of the report.

After learning that traders took money to run away, Wang Zhe, a bricklayer, felt desperate that he had been cheated twice this year (elsewhere). This time, more than 600,000 people had been swept away by Zhou Yi and Li Xiang. This year, more than 2 million people had been cheated.

Since April this year, Zhang Ming has also found that two people who always pay coins on time have begun to delay for various reasons.

Zhang Ming was not worried at first, After all, they have a good reputation, and even spent nearly a million dollars to buy dozens of bitcoins again before the first batch of bitcoins reached the accounts. In the two transactions, he purchased 85 bitcoins and 25 bitcoins from Zhou Yi and Li, amounting to more than 4 million yuan.

But as time went by, he began to feel wrong gradually. I didnt expect that so many people had not received the coin for a long time when they asked in the Wechat group. At that time, they felt bad, Zhang Ming said.

Another player told reporters that two days after spending more than 400,000 yuan to buy Bitcoin, she was directly pulled to a rights group of more than 100 people by Zhou Yi when she asked Li why he didnt pay for the coin on time. She did not explain a word or mention any compensation. She said that she was blind-faced. In the so-called rights group, except Zhou Yi and Li Xiang, all of them were buyers who did not receive Bitcoin on time.

In this group, Zhou Yifa had a conversation with Weixin called Stonemason, explaining that Zhou Yi claimed that the stonemason was located in Brazil. Because of the chaotic environment in Brazil, the Bitcoin transaction could not be carried out normally, leading to the failure to pay the money.

On April 14, Zhou Yi posted a video in the group of defenders, giving a set of compensation plans again. Zhou Yi said in the video that they owe too many people Bitcoins for a while, but they still make a lot of money, so they will return the profits of five Bitcoins a day to everyone and pay off the outstanding Bitcoins slowly. However, many people in the group said they no longer believed in them. I think thats a trick. I dont accept it, Zhang Ming said.

Most players do not know where the mason is sacred, what relationship it has with Zhou Yi and whether it really exists. Although some players later indicated that they had contacted the mason, in the dialogue, the Mason said that he did receive Zhou Yis futures and claimed that the coins were also given to him.

After that, when people in the group learned that someone had decided to report the case, Zhou Yi and Li Xiang lost their connection.

Investigation on file

Hangzhou police investigative players dispute the definition of non-sucking

By April 10, I could hardly wait. I said in the trading group that two people had not delivered the goods. I found that so many people had not received the money. At that time, I felt bad. I immediately decided to go back to China and call the police. Zhang Ming said that he was also the first person to report the case.

On April 16, more than 20 buyers decided to go to Hangzhou to call the police.

According to the notice of filing, the Binjiang District Public Security Bureau of Hangzhou has investigated the case of Zhou Yi and others illegally absorbing public deposits, which meets the criminal filing standards. Some players revealed that another suspect, Li Xiang, was also arrested and detained by the public security organs in early May.

In the rights group, reporters observed that the players are most concerned about how to determine the nature of the case. They are not satisfied with the definition of illegally absorbing public deposits at present. The two people are not able to issue coins because of problems in Brazil. They are not deliberately deceiving.

By communicating with lawyers, we find that the difficulty lies in the fact that some buyers who are forced to accept the loan relationship are easy to be identified as voluntary loan relationship, and it is difficult to legally determine whether they belong to non-absorption, one buyer expressed his concern to reporters.

We just want to give the police more information to prove that they knew at the beginning of March that they couldnt issue coins, and since then the transactions have been not only non-smoking, but also fraudulent, several buyers said.

The difference between illegal absorption of public deposits and fund-raising fraud lies in whether illegal possession is the purpose. Xu Kai, a lawyer at Beijing Deheng Law Firm, said publicly.

Xu Kais analysis, for the purpose of illegal possession simply means that when illegally absorbing public deposits, the financiers do not meet the conditions of public financing to non-specific people, and financing for the purpose of not possessing your money and property is illegal to absorb public deposits. But if a financier starts by illegally raising funds for the purpose of defrauding your property, it constitutes a fund-raising fraud.

The defenders are buyers from all over the world. Because of the jet lag, people speak almost 24 hours. They constantly feedback in the group who returns home to report the case. They also discuss the meaning of police feedback in the group when they accept the case.

In response to the current progress of the case, Xixing Police Station of Binjiang District of Hangzhou responded to reporters of the Beijing News on May 21 that Zhou Yi and Li Xiang had been detained and would continue to investigate.

Risk and Legal Boundary

Bitcoin-based over-the-counter transactions are difficult to get legal recognition

Strangers who have never met in the Wechat community can also conduct large transactions, which undoubtedly provides opportunities for criminal acts such as fraud and illegal fund-raising. So where is the legal boundary for over-the-counter Bitcoin trading?

Xiao Hao, director of the Law Research Association of the Bank of China, said that the legal consequences of such acts are uncertain, and that occasional issuance of individuals is legal, which may be suspected of illegal operation.

As early as 2017, the China Internet Finance Association issued tips on how to guard against the so-called virtual currency risks such as Bitcoin. It suggests that investors participate in speculation through the so-called virtual currency trading platforms such as Bitcoin, and face the risk of price volatility and security risks. It also points out that there is no legal basis for the establishment of various so-called currency trading platforms in China.

According to openlaw, there are 461 court judgments related to Bitcoin. According to the time of document judgments, the number of Bitcoin-related judgments increased dramatically from 2014 to 2018, with 9, 26, 54, 120 and 216 cases in five years.

The cause of the case shows that 153 cases related to property infringement account for the largest proportion, of which 98 cases were judged to be theft and 37 cases were judged to be fraud.

Apart from the ICO, which is explicitly prohibited, is Bitcoins over-the-counter transactions legal and compliant?

In 2013, China gave a clear definition of the legal nature of Bitcoin itself: specific virtual goods, that is, to recognize its property status. The General Principles of Civil Law, implemented on October 1, 2017, confirms that virtual property is protected by Chinese law.

According to Xiao Haos analysis, owning Bitcoin is legal in China.

Is it legal to exchange bitcoins in our country? Xiao Hao believes that the occasional exchange between individuals is legal. In her view, the ownership in our law includes the important right of disposition. How to dispose of it is the owners private right, and no one else has the right to interfere.

However, if we regard Bitcoin as a kind of financial product, and take it as a profession, and specialize in matching and earning the difference, we may be suspected of committing an illegal crime. Specifically, we may be suspected of the crime of illegal operation under Article 225 of the Criminal Law.

According to Zhang Mingkais Criminal Law, the legal interests protected by the crime of illegal business operation are the order of market economy. Violation of state market economic regulations, disruption of market economic order and serious harm to the development of market economy are not allowed.

Xiao Hao said that in his communication with other lawyers (former criminal judges) in his team, he believed that for the sake of criminal policy, for some acts that make a difference by converting bitcoins, causing heavy losses to customers and causing serious consequences, he could not rule out reporting to the Supreme Court in accordance with Article 225 (4) of the Criminal Law, other illegal business acts that seriously disturb the market order. Finally, the form of case approval determines that an act constitutes a crime.

After the occurrence of legal incidents, if they report to the Supreme Law for case-by-case instructions, how do they characterize such acts in the market (information matching, direct counterparty, etc.) and whether they will focus on the current situation policy and the legitimate rights and interests of financial consumers?

According to Wang Deyi, a lawyer at the law firm Search for Truth, bitcoin trading in China violates the states regulatory policy, and over-the-counter transactions based on bitcoin are difficult to obtain legal recognition.

There are many over-the-counter transactions based on Bitcoin, such as futures and securities trading. Once disputes arise, investors will encounter the following difficulties: firstly, legal evidence is difficult to obtain, because online transactions are usually presented in the form of data and the evidence is difficult to fix; secondly, domestic laws, basically negative attitude towards such transactions, and many countries. Secondly, the investors have been warned of the risks. If the investors participate in the transaction, they will probably have to bear the risks themselves.

Wang Deyi said she learned that some of the online platforms cheated players of bitcoin by fictitious trading means, which in fact infringed the property rights of the players of bitcoin, and believed that the law should protect the property rights of the players.

B04-B05 Edition Collection/New Beijing News Reporter Zhang Shuxin

B04-B05 Edition Picture/Respondent Supplies

Source: Qiao Junyi_NBJ11279, responsible editor of Beijing News