The post China Bans Futures Trading, Calls It Gambling appeared on BitcoinEthereumNews.com.

The People’s Court of Pingjiang County, Hunan Province, has classified futures trading on a crypto exchange as gambling. The ruling has resulted in the conviction of several BKEX exchange employees and external promoters as accomplices in the crime of opening a casino. However, most of the sentences were ultimately suspended. BKEX Exchange and the Gambling Allegations The BKEX exchange, founded in 2018 by Ji Jiaming, is central to the case. Wu Blockchain, citing recently published criminal judgments, reported that Ji Jiaming is on the run. BKEX exchange was initially established under Chengdu Dechen BiKe TianXia Technology Co., Ltd., facilitating cryptocurrency spot trading, which later expanded into futures trading. Specifically, between July 2019 and January 2022, the company changed its registered name multiple times during its eventual dissolution. By 2021, BKEX introduced a perpetual contract trading function, allowing users to leverage their bets using USDT stablecoin. According to the report, the court determined that this trading model amounted to gambling. The court stated that it encouraged speculation on Bitcoin (BTC) and Ethereum (ETH) price movements with leverage as high as 1,000 times. “BKEX gathered people for gambling via the internet,” local media reported, citing the court ruling. Reportedly, due to a lack of operational expertise, Ji Jiaming collaborated with Lei Le, who established a team in Shenzhen responsible for running the contract trading module. The agreement split net profits, with 58% going to Jiaming’s Chengdu team and 42% to Lei’s Shenzhen operation. The court revealed that BKEX had over 270,000 users participating in contract trading, generating a net profit of over $54.7 million (approximately 300 million yuan). With the founder, Ji Jiaming, still at large, the trial focused on employees and agents. Among the eight defendants named in court documents, two were employees, and six were agents. One of the convicted…

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Filed under: News - @ January 30, 2025 9:23 am