Kryptodata

Is Huobi in trouble due to China's risky Bitcoin court decision? Asia Express explores.

Is Huobi in trouble due to China’s risky Bitcoin court decision? Asia Express explores.

– A Chinese court ruled that a man’s Bitcoin loan of 341 Bitcoins ($9.9 million) to another party is not protected by law, as Bitcoin is considered a digital commodity and does not have the same legal status as fiat currencies.

– The court’s decision highlights the risks involved in lending cryptocurrencies, as the lender bears all the risks in such transactions.

– In another ruling, the Hangzhou Internet Court stated that digital assets like nonfungible tokens should be protected under Chinese law.

– Chinese cross-chain bridge Multichain faced difficulties after its co-founder was arrested by Chinese police, leading to the shutdown of the protocol and the disappearance of enterprise funds.

– Assets stored on the Multichain bridge were swapped for stablecoins and transferred out of the protocol, prompting stablecoin issuers to freeze suspicious transactions linked to Multichain.

– There are speculations that the Chinese police may be involved in moving the coins, as similar incidents have occurred in the past.

– Cryptocurrency exchange Huobi faced rumors of senior executives being arrested, but the exchange denied the news as “fake.” However, there are claims that Huobi staff are under criminal investigation.

– Despite the rumors, Huobi’s owner, Justin Sun, stated that the exchange is doing well and has generated significant profits.

– Huobi’s USDT reserves have declined, and its total assets have fallen in recent months.

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