Asia Blockchain Updates 2019.12.02 Chinese Exchanges are in Danger, Huobi Stepped in China Government Business

Kyeongrim Amy kang
4 min readDec 2, 2019

IDAX CEO is Disappeared with Cold Wallet,
Upbit’s Another Trail: Wash Trading was not intentional,
Huobi Cooperated with China Gov. agency, SIC

Asia Blockchain Updates 2019 by Amy Kang
Asia Blockchain Updates 2019 by Amy Kang

CEO of IDAX Disappeared with Exchange Cold Wallet

Left) Logo of IDAX RIght) The notice about IDAX scam, Those seniors on the list are sued by the Company

One of the most famous Chinese crypto exchanges, IDAX has been suffered about the rumor that IDAX is trying to exit Scam for the last days and soon it was reported that CEO of IDAX was hidden with the cold wallet which contains the variety of assets in IDAX.

IDAX announced in an urgent official announcement on its website on Nov 29th that “Lei Guorong(雷国荣), the CEO of IDAX Global, was missing due to unknown reasons. Also, currently, IDAX staff can’t access the cold wallet that stores a lot of digital assets of IDAX.”

According to the document, the CEO of IDAX operated an exchange in Shanghai with a Mongolian cryptocurrency exchange license and escaped from the company with a cold wallet on Nov 21st to avoid regulations by Chinese financial authorities.

When the rumors about the CEO of IDAX float around the industry, IDAX officially replied, “The exchange is actually in financial crisis, but we are still in touch with the Lei Guorong.”

However, two days later, one of the employees have a testimony that IDAX CEO's disappear was true.

Upbit Admits “Wash Trading”, but Insists that It was not “Intentional”

Upbit was accused by Seoul Prosecution for Fraud
Upbit was accused by Seoul Prosecution for Fraud,

Chairman of the Dunamu, Operator of Upbit exchange, Song Chi-Hyung rebutted the prosecution’s allegation in the trial on Nov 29. Dunamu is a well-known blockchain and investment company, an operator of Upbit.

The 12th Criminal Agreement of Seoul Southern District Law held the 9th trial of the Upbit case. The accused suspect this time was a Chairman of Upbit Song Chi-Hyung, Treasury Director of Upbit, Nam Doo-mo, and Kim Mo-mo. They were prosecuted for fraudulent prerecord records and fraud under certain economic crime laws.

The trial was a defendant questioning. During the questioning, Prosecution mentioned that Upbit’s total earning assets from the wash trading almost reach to 254 Trillion KRW(214Billion USD), but Chairman Song Chi-Hyung argued with prosecution that Upbit actually made 254 Trillion KRW last year including all orders that have been canceled and ordered at the time, but it should not be summed up that way.

Chairman Song Chi-Hyung admitted that he had made a mistake about the Wash Trading (Bot Trading), that he didn’t tell the team when to stop.

“When we opened Upbit in October 2017, we were concerned about the lack of trading volume, and we also need to concern about the technical issues also.”

Chairman also mentioned that even if Upbit would not have provided liquidity through the corporate account ID 8 (wash trading), it would have succeeded.

He also added, “The reason why those users were attracted to Upbit is that Upbit had less volume than other exchanges at the time of opening, also was available to log in via Kakao Talk account.”

Huobi China Joined “The Blockchain Service Network” by China Government

Huobi Joins in Blockchain Network led by China Governement
Huobi Joins in Blockchain Network led by China Government

Huobi China, a Chinese cryptocurrency exchange by Huobi Global, recently has joined the Blockchain Service Network (BSN), led by China’s National Information Center (SIC).

According to Xinhua Media on Dec 1st, Huobi China joined as a member of BSN jointly sponsored by SIC, UnionPay of China Bank Card Union, and China Mobile.

BSN aims to provide a blockchain infrastructure service platform and blockchain networks that can be compatible and connected to any region or institution. BSN intends to promote the rapid development and popularization of blockchain technology through blockchain-based application development, distribution, and operations management. In addition to UnionPay and China Mobile, China Telecom, China Merchants Bank and Internet Bank Webank also joined in BSN.

Yuan Yuming, CEO of Huobi China mentioned in the media, “Huobi China will collaborate with BSN as a crucial member and one of the companies on the blockchain industry in various fields, education, research, and solution support.”

Meanwhile, Xiacheng District, Hangzhou City, China, launched the BSN platform on the “City Brain”, an artificial intelligence (AI) -based platform created to improve e-government services. Xiacheng District plans to use the BSN platform for one-stop e-government services, hotel disinfection, and Road condition monitoring.

According to SIC officials, the “BSN platform will become a scalable platform to support China’s smart society construction and digital economy construction.”



Kyeongrim Amy kang

Reimagining solutions for Enterprise SaaS models for work, and Pretty good at it!