OKCoin Customer Sues Exchange Over Bitcoin Cash Distribution

 

 

 

China’s Legal Weekly has reported that a Chinese OKCoin customer has filed suit against the cryptocurrency exchange, alleging that it failed to allow him to withdraw the Bitcoin Cash he was entitled to after the 2017 Bitcoin hard fork. He is seeking $25,000 from the exchange, as well as additional compensation to cover losses sustained by his inability to liquidate his Bitcoin Cash at its higher price point last December.

The customer, identified as Feng Bin (a pseudonym), has alleged that he had 38.748 BTC in holdings on the exchange at the time of the fork. After the fork, he received an airdrop deposit of 38.748 Bitcoin Cash. The plaintiff claims that he attempted to withdraw the BCH but was unable to do so when he discovered that there was no withdrawal button to enable the transaction.

The exchange has reportedly responded by suggesting that Bin failed to meet the deadline for BCH withdrawal from the platform. According to Finance Magnates, the exchange’s position was clear: “You cannot claim BCH anymore as the program has been removed from our platform. If you didn’t withdraw it at that time, it would be impossible to make [a] later withdrawal.”

Bin has denied receiving notice about the alleged deadline:

“I have been paying attention to the announcement of the OKCoin currency release. In all the announcements, there is no declaration of the deadline for receipt and the removal of the program.”

OKCoin has apparently questioned Fin’s lack of trading activity and “legal withdrawal qualification.” Law and Finance Research Office of the Institute of Finance of the Chinese Academy of Social Sciences deputy director Yin Zhentao reportedly told Legal Weekly that the strategy is one that OKCoin has employed with other customers as well. As Legal Weekly noted,

OKcoin has repeatedly issued a notice to receive bitcoin cash, promised to pay the same amount of bitcoin cash, and fulfilled some of the promises. However, when some customers do not receive Bitcoin cash, OKcoin does not investigate the reason, but questions the customer's qualifications.

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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