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OKCoin bitcoin exchange refutes reports claiming investment of user funds in financial products

In a recent report, Xinhua News Agency stated that two leading Chinese bitcoin exchanges, Huobi and OKCoin, have allegedly invested nearly 1 billion yuan ($150 million) of idle client funds to buy wealth management products for their own gain, Quartz reported.

The People’s Bank of China earlier this year launched spot checks on domestic cryptocurrency exchanges to determine regulatory compliance by these platforms. Xinhua said that the recent investment into financial products by these companies was unearthed during the central bank’s investigation.

OKCoin has refuted these reports and issued an official statement, saying:

“Recently there have been rumors and false allegations regarding OKCoin, and its affiliates, in their use of idle client funds.

“We would like to assure all parties, and especially our customers, that we have a strict policy of placing idle client funds into bank-backed low risk products for safe-keeping.

“We consider the safety and integrity of our client funds as our most important responsibility.

“We refute any claims to the contrary as false.”


Huobi has not issued any official statement on the issue yet.

Earlier this year, BTCC, Huobi, and OKCoin decided to implement fee-based trading for bitcoin and litecoin, amid central bank’s efforts to rule out possible infringement including market manipulation, money laundering, and unauthorized financing by domestic cryptocurrency exchanges.

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September 20 15:30 UTC Released

BRForeign Exchange Flows*

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2.161 Bln USD

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-1.251 Bln USD

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TRCentral Govt Debt Stock*

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820.5 Bln TRY

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817.1 Bln TRY

September 21 08:30 UTC 424424m

GBPSNB, MM GBP

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-0.76 Bln GBP

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GBPSNCR, MM GBP

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-3.912 Bln GBP

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GBPSNB Ex Banks GBP

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7.100 Bln GBP

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-0.184 Bln GBP

September 21 12:00 UTC 634634m

BRIPCA-15 Mid-Month CPI

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0.15 %

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0.35 %

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BRIPCA-15 Mid-Month CPI YY*

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2.60 %

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2.68 %

September 21 12:30 UTC 664664m

CAWholesale Trade MM

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-0.9 %

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-0.5 %

September 21 12:30 UTC 664664m

USInitial Jobless Claims

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300 k

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284 k

September 21 12:30 UTC 664664m

USJobless Claims 4-Wk Avg

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263.25 k

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