BKEX Under Fire in China for Alleged Illegal Crypto Gambling
BKEX, a cryptocurrency exchange, has been found guilty by a Chinese court of organizing illegal gambling through its contract trading services, marking another step in China’s tightening crypto regulations.
On this page
In an ongoing regulatory crackdown, multiple employees and agents have received prison sentences for their roles in facilitating unlawful betting.
On January 29, the People’s Court of Pingjiang County, Hunan, convicted BKEX of operating an illicit online gambling scheme, marking another crackdown on cryptocurrency-related activities in China.
According to the ruling, BKEX’s contract trading allowed users to stake USDT on Bitcoin (BTC), Ethereum (ETH), and other digital asset price swings, functioning as a high-risk betting system rather than a trading platform.
Source: bkex.com
Inside BKEX — How the Exchange Operated
Offering traders up to 1000x leverage, BKEX became a high-stakes platform where users could place massive bets on crypto price swings. This aggressive model led Chinese regulators to classify it as an illegal gambling operation.
The exchange, launched in 2018 by Ji Jiaming, constantly changed its corporate registration to dodge oversight. In 2021, Ji partnered with Lei Le, shifting focus to contract trading, which soon became BKEX’s main profit source.
Before authorities cracked down, BKEX had 270,000 registered users, with 60,000 actively trading, and had generated over 54.7 million USDT in profits.
BKEX Executives and Agents Sentenced Amid Crackdown
Eight individuals linked to BKEX have been convicted on criminal charges:
- Zheng Lei, a former crypto wallet engineer, received two years and one month in prison and a $20,900 fine, with $186,600 in illicit earnings confiscated.
- Wang, head of audit, was sentenced to one year and eleven months, fined $7,250, and held accountable for mishandling KYC verification and transactions.
- Dong, a user acquisition agent, was handed a one-year-six-month suspended sentence, fined $4,880, and lost $31,000 in commissions.
China’s War on Crypto — No End in Sight
China’s campaign against cryptocurrency has been ruthless, branding it a danger to the nation’s financial security. The sentencing of BKEX employees is merely the latest chapter in this high-stakes crackdown.
Over the years, the government has systematically dismantled the crypto industry:
- 2013: Banks were ordered to sever all ties with crypto transactions.
- 2017: The country banned ICOs and forced exchanges to close.
- 2021: Mining and trading were declared illegal.
The harsh sentences for BKEX employees underscore China’s zero-tolerance policy toward crypto-related activities that defy its regulatory framework.
The verdict serves as a stark reminder: China has no tolerance for digital assets operating outside state control.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
