Chinese crypto pair trade blows over alleged 30,000 Bitcoin debt

June 14, 2018
Chris Wheal

A Chinese entrepreneur who recently announced plans for a blockchain ‘Uber’, is under fire over claims he made about a Chinese bitcoin tycoon.

A report from Coindesk points to a number of accusations Chen Weixing made in a WeChat post on June 9, towards Li Xiaolai,  a major Chinese cryptocurrency investor and an early bitcoin supporter.

In his post, Chen  claimed that Li had raised a fund of 30,000 bitcoins in 2013 that was to mature in September 2017, yet Li pushed back the deadline to September of this year.

The reason, Chen alleged, was that Li had spent all the raised bitcoins on Just-Dice, a bitcoin gambling site.

“Everyone who’s been in blockchain industry long enough knows this. I’m not lying,” Chen wrote.

Despite offering no proof to back his claim, Chen’s accusation of a 30,000 BTC debt – worth an estimated $200m – caused a stir in the Chinese crypto community.

No evidence to back up claim

Li’s initial response was not to comment in any detail on the accusation other than to say it was Chen’s responsibility to present evidence to back up his claim.

However, the story took another turn when yesterday, Chen published 11 further allegations against Li, which also accused him of luring retail investors during the bull market in order to liquidate his profits.

In response to the latest claims, Li today published an  article in which he rebut all of Chen’s accusations.

In explaining the 30,000 BTC debt claim, Li wrote:”It’s not true. The fund was a private equity ‘equivalent to 20 million yuan ($3m).’ And I never promised to guarantee the fund’s value using bitcoin. My quote was ‘We hope (this fund) can outrun the bitcoin market.’ As for the ‘due in September’ part, the fund was set up in a ‘4+1’ model, so it ought to be due in September this year. Chen is just muddying the water.”

Li insisted Chen had no evidence to back up his claims, which he referred to as “blunt defamation.” He also told CoinDesk that he was “definitely” mulling the option of taking proper legal measures against Chen.

Chen has not yet responded to Li’s article though one suspects the saga may roll on.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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