Chinese Crypto Tycoons Embroil in Word War Over Alleged “30K BTC Debt”

An entrepreneur in China who grabbed the headlines quite recently by revealing his plans for a blockchain “Uber” may face a legal battle due to statements he made about a Bitcoin tycoon, who also happens to hail from China.

In a WeChat rant posted on Saturday, June 9, Chen Weixing made a series accusations aimed at Li Xiaolai, a prominent Chinese crypto investor and a forerunner Bitcoin advocate in the country.

Through his WeChat account, Chen alleged that Li had raised a fund of 30,000 Bitcoins in 2013 that was expected to have matured in September of 2017, but Li deferred the deadline to September of this year.

Chen claimed that the reason for the postponement was because Li had exhausted all the raised Bitcoins on a Bitcoin gambling site known as Just-Dice.

In his post, Chen wrote:

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

Showing no proof to support his allegations, Chen’s controversial rant about a 30,000 BTC debt (amounting to almost $200 million, by the time of writing) instantly caused a frenzied discussion amongst Chinese crypto enthusiasts.

In line with the accusations hurled against him, Li initially stated that he did not care to comment adding that the responsibility to present evidence regarding the statements lies on Chen’s shoulders.

However, Chen took another shot at Li on Wednesday, June 13, by posting 11 additional accusations stating that Li lured retail investors during the bull market to be able to liquidate his profits.

After that, Li published an article on Thursday, June 14, denying all of Chen’s allegations while presenting individual retorts to each allegation.

In response to the 30,000 BTC debt allegation, Li wrote:

“Once again, it’s not true. The fund was a private equity ‘equivalent to 20 million yuan ($3 million).’ 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 due in September this year. Chen is just muddying the water.”

Li continued by saying that Chen does not have any evidence to support his accusations, which he called “blunt defamation.”

Li has reportedly been contemplating on taking the appropriate legal actions against Chen.

Meanwhile, Chen has yet to issue a public statement in response to Li’s article.

This is not the first instance that Chen caused quite a stir within the cryptocurrency community using controversial statements.

Popular Chinese investor and GSR Ventures Management managing director Zhu Xiaohu earlier this year publicly stated that he does not want to be involved in any blockchain-themed WeChat group discussions, saying that he wanted to “maintain his integrity.”

In response to this statement, Chen said:

“Zhu just wants to die in the old world but I want to live in the new world to come. … He doesn’t even care to keep learning. He’s also killing the innovation of a group of passionate young people while pretending to maintain that integrity of his.”