OKEx Founder & CEO Star Xu Brought In for Questioning by Shanghai Police
The cryptocurrency market wouldn’t be what it is without the occasional China shock, and a new dose may just be in the works. Star Xu, founder of the OKEx cryptocurrency exchange, has been brought in for questioning by Shanghai police allegedly over fraud accusations levied by local investors.
Update 9/11/18: Xu has reportedly been released from police custody.
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Xu in the Spotlight
Chinese news outlet AICoin reported Xu was staying at a hotel last night, September 10th, when he was visited by Shanghai authorities. Xu was reportedly approached and surrounded by 7-8 police officers who insisted upon him coming into their station for questioning.
Xu was allegedly interrogated regarding fraud relating to an ICO being held for a token called WFee, of which OK Blockchain Capital is listed as an investor.
The description for WFee on OKEx’s site describes it as “the world’s first WiFi sharing eco-system based on blockchain technology designed for the globe.” The ICO appears to still be in pre-sale as a public sale date is not currently listed.
Another local news outlet, Sina, reported that while Xu does own a business in Shanghai, it is unrelated to OKEx or cryptocurrency in any manner. As a result, Xu may be transferred to authorities in Beijing where jurisdiction for the accusations levied exists. If sufficient cause is found for Xu to be detained, his case will be handed over to Beijing authorities for further processing.
Should the case be dismissed, Xu will be summarily released. Shanghai police have 24 hours to decide whether or not to detain him and pursue charges from the time of his initial apprehension.
*Update: the local authorities have taken this latter approach, as Xu has now reportedly been released.
Video, Telegram Suggest Heightened Tension
Video footage of Xu speaking at a Shanghai police station made its way to Twitter, first published by Twitter user cryptovenus.
OkCoin’s Telegram chat room was also briefly put in a lockdown mode of sorts, done by the administrators switching the room from a group to a channel. As a result, all user commenting was temporarily disabled and only administrators were able to make announcements.
The chat room has since been reopened for regular discussion, though questions and discussions from users related to this incident are being censored.
OKEx is currently the second largest global cryptocurrency exchange by volume, followed only by Binance. Earlier this year, they were subject to controversy centered around claims of manipulating futures prices, which largely stemmed from a number of trade rollbacks. The exchange was also accused by several users of being hacked in October of last year, though OKEx denied this claim.
Bitsonline will continue to track this story as it develops.
What’s your take? What was your impression when you heard Xu was brought in? Let us know in the comments below.
Images via Pixabay, Telegram