Business 6 August 2018Dennis Wafula
Crypto exchange OKCoin draws investor’s ire over unclaimed Bitcoin BCH
China-based cryptocurrency exchange OKCoin is facing legal problems after an investor filed a lawsuit, claiming the exchange failed to provide him with Bitcoin Cash (BCH) that he was entitled to after the August 2017 hard fork.
The investor claimed he had a balance of 39 BTC during the fork but he could not access 39 BCH which OKCoin was supposed to deposit into his account. According to LegalWeekly, this is the first time the Chinese courts are handling such a case.
According to reports, the investor, known by the alias Feng Bin, realized that he did not have the BCH when he made an attempt to withdraw the coins from his account.
To explain the matter, OKCoin stated that the investor failed to claim the coins at the stipulated time. The exchange argued that the coins could not be retrieved as the redemption period had already expired. According to the exchange, the “claim” button was an automated program that had a pre-installed timeframe, which elapsed a long time ago. The exchange also stated that the button is no longer available on its platform.
OKCoin noted that the investor displayed suspicious behavior, as his account remained dormant for too long despite the fluctuation in BCH prices last year. OKCoin stated that it is uncommon for an account to not have any trading activity for a long period of time.
For his part, the investor said OKCoin failed to announce to the investors that there was a time limit in claiming their BCH. Feng claimed he had closely followed all the developments concerning OKCoin and at no time did the company make such an announcement.
Feng is seeking RMB169,969 (US$25,000) in compensation for the losses caused as a result of being unable to sell his BCH at peak prices.
OKCoin is a crypto exchange that allows customers to trade in Bitcoin BCH, LTC, BTC, ETH and other currencies. The exchange was founded in 2013 and has been offering clients a secure platform for trade. OKCoin expanded to the United States earlier this year, opening offices in San Francisco, California.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
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