OKCoin and Roger Ver have had a breakdown in communication which has ultimately resulted in the exchange defaulting on payments of $10k a month. OkCoin a exchange used by the majortiy of Chineese and east asian Bitcoin investors, has come underfire from the publicf for failing to commit to the terms of a contract signed over to Roger Ver which granted the exchange control over the Bitcoin.com domain with intentions to monetise the traffic it receives on a daily basis.
A detailed time line of the situation at hand is currently on Reddit but here are the main events comprising the drama at OKCoin.
- Dec 15-16 Roger Ver and OKCoin CEO Changpeng Zhao, sign a contract outlining a transfer of the Domain Bitcoin.com to OKCoin in exchange for monetising traffic. Terms were if less than $40k is generated a month than a $10k fee is to be paid to Ver every month.
- For 3 and a half months operations seemed well with OKCoin CEO progressing monetisation and adverts on his end. However the CEOS departure lead to all things coming to a end.
- Development of the domain stops on OKCoin’s end and Roger Ver eventually asks for the fees to be paid. OKCoin initially cant facilitate a BTC so a USD bank transfer was suggested.
- May 13th bank transfer not sent
- May 14th Bitcoin,com taken offline by OKCoin
- A new contract is supposedly sent by Star entitled Bitcoin.com_v8
However as of recent J Maurice a freelance IT Security consultant the following information has come to light as of the 21st of may:
- J. Maurice performs a cryptographic analysis on the PDF documents and finds that the new v8 document was never digitally signed by either party, and the hand-drawn signature image of Roger was copied from the signed v7 contract. He concludes that the v8 contract was forged by OKCoin and never agreed to by either of the parties:
To conclude the situation is worsening with OKCoin repeatedly making attempts to stay out of the limelight as the pressure intensifies for them to pay up what is owed. The company has attempted using loopholes in the original contract in a attempt to avoid the payments to no avail. Many have also pointed out how the exchange may be experiencing financial problems with some even pointing out that the exchanges negative cash flow maybe the cause of potential solvency problems. With MtGox a stark example of how insolvency and fractional reserve systems can lead to disaster all eyes are on the investigation which has seen the exchanges practices exposed from a simple breach of contract only costing the exchange $10k a month. We will keep you updated with all the drama as it unfolds. The widget above is self updating providing all the latest news from Roger Ver’s side.
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