OKEx Exchange Founder Detained on Crypto Fraud Charges in China
Star Xu, the founder of exchange services provider OKCoin and the world’s second-largest crypto exchange OKEx, has allegedly been detained in China in relation to suspected digital currency fraud.
According to the news outlet, Xu is currently being held in the Shanghai Weifang Xincun police station.
Tech news sources ZeroHedge reports that investors in WFEE Coin — a company where Xu is a shareholder — complained to the police about the company’s allegedly fraudulent practices, prompting the police to bring Xu in for questioning.WFEE issued tokens and sold them through their website. As a WFEE shareholder, Xu can be held responsible for any kind of fraud related to the company.
The news of Xu’s detentions comes shortly after OKEx volumes significantly surged this summer. Earlier in August, OKEx posted a new record in July 2018 with $5.7 billion in volume, as compared to June’s $2.9 billion.
After the news of Xu’s alleged detention broke today, CoinMarketCap data showed that OKEx saw an almost 3 percent drop in trading volume over a 24 hour period, having traded around $714 million on the day.
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