OKEx Founder Might Be In Trouble

This article was published on: 09/11/18 7:43 PM

Marcelina ŁukaszewiczWritten by | cryptocurrency, exchange, news

OKEx Founder Might Be In Trouble

The evening of Star Xu wasn’t very peaceful. He is a founder of world’s second-largest cryptocurrency exchange platform OKEx due to Coinmarketcap.

During the evening September 10th, Xu was allegedly arrested in China, according to local news portal Sina News.

On the evening of September 10, some netizens broke the news that Xu Xing was suspected to be taken away by the police to assist in the investigation of digital currency fraud. The matter of the case is WFEE, the company that issued native tokens which were sold through the website. The police in China has received many complaints about alleged fraud connected with WFEE’s tokens.

Why Star Xu then?

The founder of OKEx is a shareholder of WFEE so he can be responsible for the fraud. As ZeroHedge wrote:

“However, the investigation has shown Xu’s company in Shanghai is not responsible for issuing the currency. Instead, that part of the business was handled in Beijing.
The WFEE team’s location seems to be in Shanghai. As such, it makes little sense for them to defraud investors through a Beijing subsidiary. The exact nature of Star Xu’s involvement remains unclear at this time.”

The video of Xu’s dialogue with the police was madly transmitted online. In the video, Xu Mingxing said that he was surrounded by seven or eight people in the hotel.

In the morning of September 11, the reporter of the Financial Association confirmed, from the Shanghai Weifang Xincun police station, that Xu Xing was taken to the police station on the evening of the 10th to help investigate the suspected digital currency fraud and is still under investigation. If the case is true, the suspect will be sent to the detention center according to the process; if the evidence is insufficient, he will be released at the latest 24 hours after the arrest.

According to reporters in front of the police station, Xu Xing is still in the police room.



Image by Piotr Swat / Shutterstock.com

 

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Last modified: September 11, 2018

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