OKCoin Founder Was Detained in China Amid Fraud Allegations

post image

The founding father of the second largest cyber-money bourse on the planet OKCoin was reportedly detained on the occasion of suspected crypto-scam. According to the information of local media outlets, the OKCoin’s «constitutor» Star Xu appeared in the hands of law enforcement in China.

Alleged Fraudulent Performances And Consequent Detention

On September 11, Sina News reported that Xu was allegedly detained by police in the Chinese city of Shanghai. The site also added that the trading venue’s founder would be freed in the span of 24 hours unless sufficient proof of his involvement is provided. 

Our top trading bots

Another news outlet ZeroHedge points out that the reason for the detention was the complaint of WFEE Coin investors, where Xu held some shares in this entity. They notified law enforcement about the alleged scamming performances carried out in the company and urging the police to interrogate the founder. 

As per the report, WFEE emitted tokens and vended them via the company’s online platform. Thus, as long as XU is the business’s shareholder, he can be held accountable for any scamming practices related to the entity. 

ZeroHedge goes on to specify that the probe outwardly demonstrated that OKCoin had nothing to do with emitting WFEE Coin. The media also noted that it would not make much sense for the company to dupe investors via Beijing branch.

Background

The information regarding Xu’s alleged detention came following the considerable soaring of OKEx volumes this summer. For instance, two months ago OKEx, a crypto-trading venue founded by Xu too, saw a novel record of $5.7 billion in volume. This was a huge spring when compared with June’s $2.9 billion.

It was reported that amidst Xu’s detention news, the exchange’s trading volume decreased by 3% over a day.

Best Bitcoin Memes in 2018: ‘Hodling’ and Crying
2018 has not been an easy year for bitcoin, not at all. Whereas it left 2017 at the price of $10,000, it started the new year in a pretty bullish manner...
Tom Lee Says Bitcoin’s Price Will be $15,000 at the End of 2018
Bitcoin-bull Tom Lee has nearly halved his BTC prediction from $25,000 by the end of the year to $15,000. Also, this week has not been the best for the...
Coinbase's Secrets Disclosed: Company Gets Ready For Huge Growth In Trading
The top American cyber money trading venue has been tranquilly getting ready for a super-rise in trading volume, CNBC reports. That bourse, apparently,...
Three Ways to Disrupt Bitcoin's Reputation
It’s been nine years since Satoshi Nakamoto introduced Bitcoin to the world, and whoever argues, it has managed to become the part of our financial lives...
BTC Market Cap May Plummet to $77 billion in 10 Months, Say Swiss Researchers
The total market cap of BTC has all the chances to drop from over $118 billion to no more than $77 billion by the end of 2018, the new research says....
The Official Launch Of The Multi-Currency Mobile Wallet Edge Wallet
Developers of the cryptocurrency mobile wallet Edge (formerly Airbitz Wallet) announced the official launch of the product. The Edge Wallet supports...
Ripple Starts A Partnership With Western Union
A representative of one of the most extensive Western Union payment systems officially stated that the company began studying the technology of Ripple cryptocurrency....
Israeli Diamond Exchange Issues Its Cryptocurrency
The Israeli Diamond Exchange began issuing its cryptocurrency - for settlements between dealers and investors. This should breathe new life into the industry,...
Maduro Set Petro’s Pre-Sale Date. 5 Answers to Questions About Venezuela’s Crypto
Venezuela keeps struggling with economic crisis and extreme inflation. The country’s public currency bolivar sinks down breaking late anti-records, whereas...
Steve Wozniak: "Bitcoin Is Better Than Gold"
In an interview with CNBC, Steve Wozniak, the co-founder of Apple Inc and Tech Geek, said that Bitcoin is better than gold or the US dollar. During the...
Scammers earned more than $5 million on the upcoming pre-ICO Telegram
In January, TechCrunch published the Whitepaper of the upcoming ICO TON, during which it plans to raise up to $1.2 billion. Scammers used the agio around...
Toronto Will Look Into Cryptos
A representative of the Toronto City Council suggested using Bitcoin to pay taxes on real estate, parking and land. Toronto City Councilman Norm Kelly...
No Need For Buying A Whole Bitcoin: ‘Bits’ Might Get On Stage
There are lots of newcomers in cryptocurrency industry who assume that bitcoin is too expensive for them to purchase. Sure enough, for the past week, its...
Why Bitcoin is No Longer Convenient for Transactions
Last year on December 17 bitcoin’s value reached an unprecedented rate of over $20,000, though the correction, which occurred a few days later, didn’t lead...
Bitcoin Strikes the World’s Biggest Exchange – Here’s What it Means
It has been over two weeks since Cboe Global Markets Inc. and CME Group Inc. received a green light from the U.S. Commodity Futures Trading Commission...