Bitcoin players sued Huobi.com, accusing Huobi.com of luring users to buy Bitcoin with high returns

Bitcoin is taking the world by storm

As digital currency Bitcoin stole the spotlight in 2017, it was hard to remember how other cryptocurrencies fared.

According to a new report, 1,000 Bitcoin holders own 40% of the market.

These major investors, known as “whales,” could allegedly cause the value of cryptocurrencies to plummet at any time.

Bitcoin once approached the $20,000 mark. At the beginning of the year, Bitcoin was worth only $970.

However, cryptocurrencies are very volatile. On December 10, the value dropped below 14,000 yuan, and on December 11, it rose to over 16,000 yuan.

Moreover, financial experts believe that Bitcoin may be more unstable than people think. Recently, a Chinese Bitcoin player took the case to court in anger over losses.

On December 14, according to the official website of Haidian Court, a Bitcoin player sued Huobi.com for compensation for a loss of 217,194 yuan. The Haidian Court recently accepted the case. Because the user agreement stipulated an arbitration clause, the court finally ruled to dismiss the plaintiff's lawsuit.

According to the Bitcoin player, after registering an account on Huobi, he paid a total of 321,966 yuan to Huobi and withdrew 104,772 yuan from Huobi from November 2013 to June 2016, resulting in a loss of 217,194 yuan. The losses were all caused by trading Bitcoin and Litecoin with a 20x leverage through an account on the bitvc website.

Since the bitvc website does not accept RMB recharges, but only virtual currency recharges, all transactions on the website are conducted by recharging cash on Huobi to purchase Bitcoin and Litecoin, and then transferring the purchased virtual currency to the account on the bitvc website.

The Bitcoin player also said that Huobi.com knew that virtual futures trading was illegal, but it still set up a bitvc website and set up a link on Huobi.com, using high leverage and phone invitations to lure registered users of Huobi.com to the bitvc website to trade virtual currency futures with up to 20 times leverage. Huobi.com further defrauded him by controlling background data and false transactions, causing him to suffer losses, so he asked Huobi.com to compensate for the loss of 52.8567 Bitcoins and 815.9731 Litecoins.

The court held that the arbitration clause agreed upon by the Bitcoin player and Huobi Company had been confirmed to be valid by the effective ruling, and the dispute in this case should be arbitrated by an arbitration institution. The court had no jurisdiction and the lawsuit should be dismissed.