Huobi acquires crypto exchange Bitex
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Huobi in trouble as exchange lacks accountability accuses lawyer

After a recent fraud, Huobi got into trouble as they have been accused of operating without any jurisdiction accountability. In simple words, this means that they aren’t based anywhere to be held responsible by that country’s laws. The lawyer, Jonathan Levy, who accused Huobi, also pointed out that the company Seychelles address is only for mailing. This is the same country that the exchange claims to be operating from.

Lawyer accuses Huobi (with valid points)

Jonathan says that Huobi is running an exchange that is decentralized and doesn’t answer to any government or jurisdiction. The reason for this was a fraud that happened via their exchange that involved a Chinese fraudster and a French national. The fraudster and funds were traced by the authorities, and the same was located in Huobi. After this, the national police of France launched an open investigation and asked for the exchanges’ help to recover the funds.

Huobi in trouble

Things were still okay to this point as such incidents can happen. But when Huobi refused to cooperate with the French and the Seychelles authorities, the main problem happened. The lawyer then explained the situation further in detail. He said that Huobi didn’t cooperate with the French authorities, which allowed the fraudster to escape with the stolen funds. And when the Seychelles government investigated the issue, it was too late to recover the funds. Plus, they reported that Huobi’s presence there is just a mailing address. Therefore, even they couldn’t do anything.

Now what?

It is important to note that Huobi’s lack of presence in any jurisdiction could become a big problem for investors. If they can’t be held accountable for any issues faced by users, then there is hardly any chance of them helping out. This is why Jonathan has proposed that authorities set up a “superfund” in Europe that could help out victims like this. And the superfund will get contributions from top exchanges that have been operating there. This could help people out, and because of security issues, one won’t lose out on their lives savings or entire investments.

What are your thoughts as Huobi gets in trouble due to the lack of accountability of any jurisdiction? And do you think they need to have headquarters to keep operating? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

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