(BlockBar) According to the information circulated on the Internet, Hui suspected to have used 2,000 BTCs of its customers, and used 100 times of leverage expecting to huge earns. However, with wrongly predication, losses hugely exceed capitals. Unable to take the liability, he ultimately chose to commit suicide.
The so-called leverage refers to users using their own principal and borrow money for double-way transactions, in order to leverage multiple funds. Usually the platform set up multiples of three or five times, which means that if you have only a BTC, through the leverage, you can borrow up to two or four BTCs at a time. When you are bullish on BTC and buy with borrowed principal, you can get a real gain of three or five times. Of course, if BTC falls, losses will almost synchronously magnify. According to BTC’s current price of 56,000 yuan, the loss of funds caused by leverage is more than 100 million yuan.
According to public data, Hui studied EMBA in Yangtze Business School of China University of Science and Technology. In this industry, he is quite promising. From 2003 to 2008, he served as senior researcher of IBM China Research Center. What’s more, he used to be the senior product manager of Microsoft. Since 2008, he participated in the foundation and development of several companies, including the Internet financial platform “Huago” and “Shenxian Wealth” as well as BTE, which is now widely known in the currency circle.
At present, Hui’s family has not issued an obituary of Hui Yi’s death, nor has Bit Yi’s official news. The cause of Hui’s death is still confusing, and how to compensate for the loss of 100 million yuan of customers’ funds is also unknown. Facing the bad news, Hui’s former friends and investors in the circle mourned one after another. It also awakens us to the risks of leverage and futures. In the digital currency market with huge fluctuations, if the leverages are easily used, once the wrong direction is judged, the losses will be huge. It even has irreparable consequences.
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