BKEX and CEO Face Lawsuit Over Alleged Crypto Fraud
On Thursday, February 19, 2026, Xiaoliang Mou filed a complaint in the US District Court for the Southern District of New York against BTC King Technology Co., LTD, also known as “BKEX,” and Ji Jiaming, the founder and chief executive officer. The case alleges violations of the Commodity Exchange Act (CEA) and demands a jury trial.
The complaint arises from the collapse of BKEX, a global centralized cryptocurrency exchange. Mou claims that BKEX induced customers to deposit millions of dollars worth of cryptocurrency onto its platform by portraying itself as a large, liquid, and credible exchange while operating a deceptive custody model. According to the filing, BKEX diverted customer assets off-platform, concealed those transfers, and then froze withdrawals after substantial assets had been moved beyond reach.
Mou states he deposited approximately 115.93 Bitcoin (BTC), 14.908 Ethereum (ETH), and $53,640 in USD-denominated stablecoins into BKEX-designated deposit addresses, relying on BKEX’s representations that customer assets would be held in custody, accurately reflected on internal ledgers, and available for withdrawal upon demand.
The complaint alleges that on May 29, 2023, BKEX suspended customer withdrawals, attributing the freeze to a criminal investigation, while wallets associated with BKEX engaged in large-volume transactions consistent with asset flight and money laundering. Customers were told the suspension was temporary and that BKEX was working to restore operations.
Mou further alleges that Ji Jiaming stole millions of dollars worth of cryptocurrency before and after the withdrawal freeze, later escaping criminal prosecution and remaining a fugitive.
The plaintiff claims BKEX misrepresented the size of its exchange, falsely claiming in 2019 that it processed approximately $1.1 billion in daily cryptocurrency trading volume. The complaint alleges that BKEX copied trade data from Binance, the world’s largest cryptocurrency exchange, reproducing Binance’s transaction history with a delay of several seconds and falsely presenting that data as BKEX’s own trading activity.
According to the filing, between 2020 and 2022, Mou deposited substantial quantities of BTC with BKEX for trading purposes. Blockchain forensic analysis allegedly confirms that Mou’s BTC was transferred out of the BKEX-controlled deposit address without his authorization and into multiple deposit addresses associated with Binance, and then into Binance’s hot wallet address.
The complaint states that BKEX systematically transferred customer BTC, including Mou’s deposits, in matching quantities and close temporal proximity to third-party exchange wallets, including wallets controlled by Binance, without disclosure or customer authorization.
The plaintiff seeks actual and compensatory damages, prejudgment and post-judgment interest, equitable and ancillary relief, costs and fees, declaratory relief, injunctive relief, and such other and further legal or equitable relief as the Court deems just, proper, and equitable under the circumstances.
Please contact BlockTribune for access to a copy of this filing.
