Houbi Global, situated in Seychelles, has been accused by lawyer Jonathan Levy of operating outside of any jurisdiction. The exchange’s actual location in the island nation, according to the lawyer, is purely for mailing purposes.
Jonathan Levy, a lawyer located in the United States, has accused Huobi of having a decentralized worldwide business that “operates everywhere but is held accountable nowhere.” Levy’s complaint follows the alleged intransigence of the Seychelles-registered cryptocurrency exchange, which resulted in a French national losing cash to a Chinese fraudster.
Prior to the Chinese national’s disappearance, along with the stolen monies, the unidentified victim had successfully located the fraudster’s Huobi account using Ciphertrace. Based on the victim’s efforts, the French National Police began an investigation and requested assistance from the bitcoin exchange in retrieving the assets.
Huobi’s presence in the Seychelles
However, according to the lawyer’s statement, the scam victims’ attempts to collect their monies were finally thwarted by Houbi’s refusal to cooperate with both French and Seychelles law enforcement. He elaborated:
Huobi Global mislead French authorities by claiming to be under the jurisdiction of the Seychelles. Because of the delay, the thief was able to flee with their haul. When the Seychelles Police finally investigated, it was too late, and they admitted that they lacked jurisdiction over the crime because Huobi’s presence on that island nation was only a mailing address.
Meanwhile, Levy cites this latest event as another another reason why European authorities need to establish a crypto industry-funded “Superfund.” He stated that such a fund would be beneficial to victims of crypto crime, such as the French national, whose sole hope of retrieving the monies today rests on the intervention of the European Union or the OECD.
Concerning the possibility of big crypto exchanges to make substantial donations to any such superfund, Levy contends that platforms such as Huobi (whose daily crypto turnover allegedly surpasses $10 billion) and the other top ten exchanges are well placed to do so.