OKCoin

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OKCoin
Industry Digital Asset Exchange
Headquarters Beijing, China
Key people
Star Xu, CEO
Number of employees
130
Website okcoin.com

OKCoin is a digital asset trading platform providing spot trading services between the US dollar, Euro, and Japanese yen as fiat currencies, and Bitcoin, Litecoin, Ethereum and other digital assets to customers around the globe. OKCoin Exchange China operated a CNY/BTC spot pair with margin trading from its Beijing entity, while OKCoin International operates a USD/BTC spot pair with margin trading and BTC/USD futures from its Singapore entity.

History[edit]

OKCoin was founded by CEO Star Xu in 2013 and has raised US$ 10 million in investments from Ceyuan Ventures, Mantra Capital, Ventures Lab and other notable private investors including Silicon Valley investor Tim Draper.[1]

From December 2014 and until May of 2015 OKCoin has been managing the domain bitcoin.com, and stopped due to a dispute with the domain-owner, Roger Ver.[2]

As of August 2016, OKCoin was the largest Bitcoin exchange in the world with a volume of over 16,000,000 Bitcoins per month.[3]

In February of 2017, OKCoin and Huobi, the two largest Bitcoin exchanges in China, were flagged by the People’s Bank of China for operating a trading platform without appropriate Know Your Customer (KYC) and Anti-Money Laundering (AML) systems.[4]

In April 2017, according to the report, OKCoin has stopped accepting US dollar.[5] In the same month OKcoin joined Bitfinex in freezing wire transfers, citing ‘issues’ with intermediary banks. [6]

In May of 2017 OKCoin, have been accused of using idle clients funds to make investments in “wealth management products“ which are often high-yielding and risky.[7]

In September 2017, OKCoin announced to stop Yuan-to-Bitcoin trading by October's end. [8]

Controversy[edit]

On May 23, 2015, OKCoin made public a contractual dispute the company was having with Roger Ver over the management rights to the domain name "bitcoin.com."[9][non-primary source needed][unreliable source?] OKCoin management claimed that they could no longer pay Ver the money which was contractually owed to him due to a recent case in which Ripple Labs was fined $700,000 by FinCEN for failure to collect proper KYC paperwork from Ver.[10] In response, Ver published several months of email history between himself and OKCoin demonstrating that OKCoin had not been making payments for several months prior to the news about Ripple's fine.[11] In the emails, OKCoin CEO Star Xu claims to have discovered a more recent version of the contract signed by both parties, which included a clause that gave OKCoin the right to terminate the contract upon six months notice. Until this point, all communications between the two parties had been cryptographically signed using GPG, but Ver was able to prove that the newer version of the contract was signed with the same timestamped signature he appended to the previous version of the contract, indicating that his signature was merely copied over to the new document.[12] OKCoin proceeded to make a public offer of a $20,000 reward for anyone who was able to prove that Ver's statements were false; Ver responded in kind by offering a $1,000,000 reward to anyone who could prove that the signature on the more recent contract was actually valid and not a forgery.[12] The OKCoin reward was paid at the end of May, 2015 following the report of analysis of the contracts posted publicly by OKCoin.[13]

See also[edit]

References[edit]

  1. ^ "China's Largest Exchange Gets $10 Million Thanks to VC Funding". Cointelegraph. 19 March 2014. 
  2. ^ "Roger Ver and OKCoin Squabble over Bitcoin.com, Breach of Contract". Cointelegraph. 25 May 2015. 
  3. ^ "Bitcoin Charts / Markets". www.bitcoincharts.com. Retrieved 2016-08-06. 
  4. ^ "Breaking: Chinese Exchanges Resume Withdrawals, Bitcoin Likely to Surge". Cointelegraph. 31 May 2017. 
  5. ^ "OKCoin Becomes Latest Bitcoin Exchange to Freeze US Dollar Deposits - CoinDesk". CoinDesk. 2017-04-19. Retrieved 2017-10-19. 
  6. ^ "After BitFinex, Chinese Bitcoin Exchange OKCoin Suspends Wire Transfers - CryptoCoinsNews". CryptoCoinsNews. 2017-04-19. Retrieved 2017-10-19. 
  7. ^ "Two Chinese Exchanges Help Themselves to User Funds". Cointelegraph. 23 August 2017. 
  8. ^ "Huobi, OKCoin to Stop Yuan-to-Bitcoin Trading By October's End - CoinDesk". CoinDesk. 2017-09-15. Retrieved 2017-10-10. 
  9. ^ OKCoin) (2015-05-23). "OKCoin no longer managing Bitcoin.com due to contract conflict with domain owner". OKCoin Blog. Retrieved 2015-05-26. 
  10. ^ Stan Higgins) (2015-05-05). "FinCEN Fines Ripple Labs for Bank Secrecy Act Violations". Coindesk. Retrieved 2015-05-26. 
  11. ^ Joseph Young) (2015-05-25). "Roger Ver and OKCoin Squabble over Bitcoin.com, Breach of Contract". Cointelegraph. Retrieved 2015-05-26. 
  12. ^ a b Allen Scott) (2015-05-25). "Roger Ver: 'I Will Offer a $1,000,000 Bounty to Anyone Who Can Prove I Signed that Contract'". Cointelegraph. Retrieved 2015-05-26. 
  13. ^ Ben McGinnes (2015-05-29). "Analysis of OKCoin Documents". Retrieved 2016-09-05.