Chinese Court Convicts BKEX Employees for Running Illegal Crypto Gambling Operation
A Chinese court has found cryptocurrency exchange BKEX guilty of operating an illegal gambling platform through its contract trading services.
Several key employees and agents associated with the exchange have been sentenced to prison, highlighting China’s ongoing crackdown on cryptocurrency-related activities.
BKEX Operations Deemed Illegal Gambling
On January 29, the People’s Court of Pingjiang County, Hunan Province, determined that BKEX’s contract transactions functioned as a form of online gambling. According to the ruling, the exchange enabled users to bet on cryptocurrency price movements using the stablecoin Tether (USDT) and allowed high leverage—up to 1,000x—to amplify potential gains or losses.
While futures trading is a common financial instrument in crypto markets, the court found that BKEX’s approach violated Chinese laws by effectively operating as a casino where traders were encouraged to gamble on financial outcomes.
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The judgment further revealed that Ji Jiaming, BKEX’s founder, launched the platform in 2018 through Chengdu Dechen BiKe TianXia Technology Co. To evade regulatory scrutiny, Ji repeatedly changed the company’s registration before dissolving it. In 2021, he partnered with Lei Le to develop and promote the perpetual contract trading feature, which became a core part of BKEX’s operations.
At its peak, BKEX’s contract trading service amassed over 270,000 users, including 60,000 active traders, generating an estimated 54.7 million USDT in profits before Chinese authorities intervened.
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Key BKEX Employees Sentenced
The court sentenced eight individuals for their roles in facilitating illegal gambling on the BKEX platform.
- Zheng Lei, a former wallet engineer and department head, received two years and one month in prison and a fine of 150,000 yuan ($20,900) for providing technical support to the operation. His earnings of 1.34 million yuan ($186,600) were also confiscated.
- Wang, the head of BKEX’s audit department, responsible for KYC verification and transaction processing, was sentenced to one year and 11 months in prison and fined 52,000 yuan ($7,250).
- Dong, a BKEX agent who recruited users through QR codes and referral links, was sentenced to one year and six months in prison (suspended) and fined 35,000 yuan ($4,880). His commission earnings of 223,000 yuan ($31,000) were also seized.
China’s Strict Stance on Crypto Continues
This ruling is the latest in China’s long-running crackdown on cryptocurrency activities, which the government considers a threat to financial stability.
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China has banned cryptocurrencies multiple times over the past decade, including:
- A 2013 ban on banks handling cryptocurrency transactions
- A 2017 prohibition on initial coin offerings (ICOs) and centralized exchanges
- A 2021 nationwide crackdown on trading and mining
Despite these measures, underground crypto operations have persisted, with Chinese authorities ramping up enforcement actions in recent years.
BKEX’s downfall serves as a clear warning to crypto platforms operating in China, reinforcing the government’s zero-tolerance policy toward activities deemed illegal under national law.
