Suicide of Chinese Bitcoin Trader After Losing 2,000 BTC on x100 Leverage
A big story this week was the suicide of a Chinese Bitcoin trader who traded on x100 leverage and is assumed to lost 2,000 BTC through his trading according to 8btc. They reported that the trader, Hui Yi, lost this amount after going short. He was co-founder and CEO of the analysis platform BTE.TOP and died on the 5th June.
Measured in current prices this were around 16M$, leveraged by 100 times this is an insane magnified loss. At this leverage he was basically trading 200k Bitcoins, means +1% (while he was short) was enough to get him liquidated.
Exposed was his death by an ex-partner and there are speculations that Yi was not trading with his own money, but money from his company clients. There are also speculations about a faked death which we do not want to comment in any way. At this point our condolences to all relatives and people who were close to Hui Yi.
This story shows how important it is to know the risk when trading Bitcoin on leverage. To trade x100 is kind of irresponsible, even you are a professional trader.