OKEx Boss Assisting Authorities Investigate Fraud Case
Xu firm located in Shanghai is not part of the investigations.
Star Xu In Custody Over Fraud Case
Reports emerging from China indicate that crypto exchange OKEx boss, Star Xu is behind custody over alleged fraud. Further reports indicate that he helping authorities in conducting investigations in regards to fraud linked to WFEE coin. Xu is a major shareholder in WFEE.
Photos circulating on social media shows Xu being grilled in a police station in Shanghai. He is otherwise able to move around the station without any restrictions.
According to cnLedger Twitter feed, early investigations indicate that Xu’s Shanghai-based firm has no links to any fraud activity under probe. The case details will be based in Beijing since the alleged fraud was committed in the capital but not in Shanghai. The news contradicts version given by a section of investors. Some allege that the group that purchased WFEE has headquarters in Shanghai.
Police showed interest in Xu on Monday, with the aim of getting his version into investigations. He has custody maximum limit of about 24 hours which will end at 10 pm on Tuesday.
The probe comes at a time when China has increased a crackdown on illegal crypto activities. The nation is strictly implementing regulations set in place as a way of fighting fraud and money laundering. Media reports in August indicated that China was set to add overseas exchanges to its Great Firewall as a means of ending cryptocurrency trading. Activities like promotional are also under the radar of authorities.
OKEx has been emulating other trading platforms globally in terms of expansion. From July, the platform adopted a rapid expansion model. Already, the exchange has inked a deal with Malta Stock Exchange that will see a roll out of a tokenized securities platform.
For investors leaving outsideChina, Xu’s involvement with authorities has raised concern. Whale Panda, a notable crypto opinion holder stated that China’s crackdown on crypto is killing the country’s global status in the crypto world.