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A Chinese Bitcoin trader has reportedly committed suicide after he lost his cryptocurrency investment in a highly leveraged trade position, otherwise called a 100x leverage bet. Hui Yi, who was the co-founder and CEO of cryptocurrency market analysis platform BTE.TOP, died on June 5.
Hui lost 2,000 BTC in a 100x leverage bet. 100x leverage means that if the Bitcoin price goes up by 1%, the account will be wiped out and all the money will go to zero. Leveraged trading allows users to earn huge profits while exposing them to higher risks at the same time, due to its volatile nature. According to the rumors, Hui embezzled the 2,000 BTC from users of his crypto firm. He was last active in a WeChat group on May 31st. He had predicted that the Bitcoin price would plunge within the hour and its futures prices would go to an intraday low of $7,000.
Hui Yi was a serial entrepreneur. Prior to his current occupation as the CEO of BTE.TOP, he served at the IBM China research center as a senior researcher and later a senior product manager with Microsoft during 2003-2008. He had built a reputation for himself and a hefty number of followers after several accurate predictions regarding crypto market trends.
His startup, BTE.TOP was alleged to have been the first blockchain project funded by VC giant Softbank China Venture Capital (SBCVC). However, as reported by 8BTC, SBCVC revealed in a statement that while the bank had approached BTE.TOP last year, it decided to drop the investment at the end of 2018.
Suspicions that Hui Faked his Death for $14 Million in Bitcoin
Hui’s sudden death has startled the Chinese crypto community. The investors of BTE.TOP have all but lost their investments. The timing of his death and his actions before have come under suspicion. Some even claim that Hui has faked his death to run away with the 2,000 BTC, which amounts to over $14 million as of today. However, his followers and supporters have discarded the rumors, saying that Hui was a successful crypto analyst and an entrepreneur. He supposedly had earned way more than the 2,000 BTC for which he allegedly faked his death, and therefore he would have no reason to do so.
His company, however, is now left with the problem of having to pay back the 2,000 BTC to investors. Pictures were also posted of their office with claims that the company has closed down its offices almost a month ago.