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OKEx Founder Detained on Fraud Charges

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OKEx Founder detained

Star Xu, the founder of cryptocurrency exchange, OKEx was arrested in relation to suspected digital currency fraud.

The WFEE Coin

Allegedly, he was part of a fraudulent scheme regarding the WFEE Coin.

However, the investigation has shown Xu’s company in Shanghai may not have been not responsible for issuing the currency, as reported by Nulltx.com.

“The WFEE team’s exact 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. He is expected to be either released or remain in custody after the initial 24-hour period expires in a few hours.”

Cryptocurrencies have always been susceptible to fraud and scam leading to public distrust

It’s part of the reason China has cracked down on cryptocurrency trading.

Authorities have already blocked access to dozens of websites operated by offshore cryptocurrency exchanges that provide trading services to citizens.  It will also monitor and shut down domestic websites related to cryptocurrency trades and initial coin offerings (ICOs).

Then, it’ll ban payment services from accepting cryptocurrencies, including bitcoin.

However, it’s not just cryptocurrency firms facing the heat, though.

The country is also going after hotels, office buildings, and shopping malls, too. None of them can host marketing events involving cryptocurrencies any longer.  The government is also using WeChat to tighten the flow of information on cryptocurrencies.  This is part of a larger effort to regulate social media, an important channel to cryptocurrency traders.

 

 

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