- US-based lawyer accuses Huobi of lack of accountability.
- A French national lost their funds to a Chinese fraudster operating through Huobi.
- French and Seychelles police investigations were halted by Huobi’s lack of cooperation.
Jonathan Levy, a US-based lawyer, accused cryptocurrency exchange Huobi Global of operating without accountability to any jurisdiction. The lawyer claimed this statement after a French National lost their funds to a Chinese fraudster as Huobi Global allegedly refused to cooperate with the police.
The unnamed French national victim used Ciphertrace to locate the fraudster’s account with Huobi. The French National Police then opened an investigation, requesting Huobi Global’s assistance in recovering the stolen funds.
According to the French national’s lawyer however, attempts to recover the stolen funds were hindered by Huobi’s refusal to cooperate with both French and Seychelles law enforcement.
Levy added:
Huobi Global misled the French Police and claimed they were under the jurisdiction of Seychelles. This delay allowed the criminal to escape with their loot. When the Seychelles Police finally investigated it was already too late and by their own admission, they lacked jurisdiction over the crime since Huobi’s presence in that island nation is just a mailing address.
The US-based lawyer then accused Huobi Global of running a decentralized global operation that “operates everywhere but is held accountable nowhere.” Levy pointed out that this incident is why European authorities need to establish a crypto industry-funded ‘Superfund’; the goal of which is to prevent cases like this and compensate victims of crypto fraud.
This Superfund would receive contributions from the top cryptocurrency exchanges. Levy claims that leading crypto exchanges like Huobi (with a reported daily crypto volume of over $10 billion) have enough ability to make such contributions.