Hunan Province’s People’s Court in Pingjiang County has issued multiple criminal judgments against employees and agents of the BKEX exchange. The verdicts, published on the Judgment Documents Network, categorise BKEX’s contract transactions as illegal gambling.Â
Several individuals, including company employees and agents, have been found guilty of aiding in operating an unlawful online casino.
The Rise of BKEX and Its Controversial Operations
BKEX was founded in 2018 by Ji Jiaming, who remains at large. Initially registered under Chengdu Dechen BiKe TianXia Technology Co., Ltd., the exchange focused on cryptocurrency spot trading.
However, in 2021, BKEX introduced a perpetual contract trading feature, allowing users to bet on cryptocurrency price fluctuations with high leverage. The court found that this feature facilitated illegal gambling activities.
How BKEX’s Contract Trading Became a Gambling Operation
The exchange allowed users to deposit USDT and place leveraged bets on BTC, ETH, and other cryptocurrencies. Users could amplify their stakes by up to 1,000 times under specific trading options.
BKEX provided market data, forced liquidation, and agent rebates, leading to significant financial gains for the platform. Over 270,000 users engaged in contract trading, generating a net profit exceeding 54 million USDT (over 300 million yuan).
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Key Figures and Legal Consequences
Since the founder, Ji Jiaming, is still on the run, the authorities focused on prosecuting employees and agents involved in the exchange’s operations. The court sentenced multiple individuals under Article 303, Paragraph 2 of China’s Criminal Law, which addresses crimes related to running illegal gambling businesses.
Zheng Lei, a wallet engineer at BKEX, was responsible for handling user funds. The court found that he knowingly supported illegal gambling by managing the platform’s financial operations. He received a two-year and one-month suspended prison sentence and a fine of 150,000 RMB.
Wang, head of the audit department, facilitated transactions and ensured compliance with KYC processes. He was sentenced to one year and eleven months in prison and fined 52,000 RMB.
Dong, an agent who recruited new users and earned commission-based rebates, was sentenced to one year and six months in prison (suspended) and fined 35,000 RMB. His illegal earnings were confiscated.
China’s Strict Stance on Cryptocurrency-Related Crimes
China has maintained a tough stance on cryptocurrencies, banning crypto trading and mining activities in recent years. The BKEX case highlights the government’s commitment to cracking down on platforms that enable speculative or gambling-like activities.
This judgment serves as a warning to other cryptocurrency platforms operating in China. With increasing regulatory scrutiny, exchanges facilitating high-risk trading may face legal repercussions similar to BKEX.
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