Legal Advice for Victims in FCoin Shutdown
A big announcement by FCoin is rocking the crypto world. Zhang Jian, the founder of Chinese crypto exchange Fcoin, revealed in a post earlier today that FCoin may not be able to pay the 7,000-13,000 BTC (worth $67 million to $125 million) that it owes users.
Individual investors or institutional investors face the problem of being unable to cash the crypto assets in FCoin. The amount of their loss varies from tens of thousands to tens of millions of Chinese yuan.
Can FCoin evade legal supervision in China?
“It is unlikely that FCoin is able to evade China’s legal supervision. Although many Chinese crypto projects choose to register in a foreign country, the object of raising token aims for Chinese investors. As a crypto exchange registered in Singapore, FCoin does not provide services for users in mainland China as it is clearly indicated in the user agreement, but in fact, there is a simplified Chinese Web page description on the website, and mobile phone number registration from mainland China is accepted as well. At present, most users of FCoin are from mainland China. “
Said Zhang Yu, a Chinese lawyer. At present, many investors report cases with Beijing BoChen, the company Zhang Jian previously operated, as the main body. What the main body is more likely to be filed by the police? Zhang Yu believes that the basis for the police to file a case is the nature of the criminal activity involved and the relationship between the subject and the criminal act. If there is no evidence to prove that Beijing BoChen is the actual operating subject or actually participates in the operation of FCoin, it is not very likely that Beijing BoChen will be the main body to be investigated.
Based on the relevant provisions of China’s criminal law, if the actual control and operation team leader of FCoin is of Chinese nationality, then victims can try to report the actual operation team members of FCoin to the police at the same time.
Police in Yancheng, Jiangsu Province, is the ablest to handle the cases of crypto space, because they have handled the cases of Plustoken and Wotoken, and they have done a very meticulous job in property disposal. They are also willing to accept such cases.
If the police do not accept the case, it may be because the case itself does not belong to the scope of criminal jurisdiction but civil and commercial disputes. If the case is filed, it is will be judged as illegal fund-raising, mainly faces two charges: fund-raising fraud and illegal absorption of public deposits.
Zhang said in his announcement that he will be responsible for the compensation, thus transforming the criminal cases into civil cases, not only reducing his own legal risk but also hinder the lawsuit of investors to safeguard their rights. However, his announcement can’t defend him or change the criminal dispute he may face into civil disputes. There is and only one standard for determining the legitimacy of the case, which is stipulated by the present laws, rather than being based on anyone’s subjective argument.