OKCoin Founder Star Xu was Taken by Chinese Police for Investigation over Crypto Fraud Case
September 10, Mingxing Xu, better known as Star Xu, the founder of the world’s largest cryptocurrency exchange OKCoin, was reported to be taken by Shanghai police into custody for voluntary questioning as he is suspected of being involved in a cryptocurrency fraud case, according to Cailian Press, a financial subsidiary of Shanghai United Media Group.
Yesteryear, a video of Star Xu under investigation in the police station is spreading on the internet. In the video, Xu told the police he was in an encirclement of seven to eight people which is “life-threatening”. The police answered that “Their behaviour cannot constitute to a criminal offence. You can launch a civil lawsuit if needed.” After watching the video, most people believe that, Xu is on his own initiative to call the police as he was threatened at that time.
However, an anonymous investor told blockchain media Northern 31 that, on September 10, a gang of victims including him wanted to ‘seek justice’ and found Xu in a hotel. They called the police immediately in order to prevent Xu from running away. He also showed the documentary evidence of calling the police.According to Sina Finance, a spokesman of local police station demonstrated that we cannot say Xu is under arrest, he is just helping with the investigation of the investigate fraudulent activity on a crypto project called WFEEcoin, of his own free will.
Xu is a shareholder of WFEE. Several investors argued that Xu’s Shanghai based company is the team behind the WFEE coin that manipulating the price.
Xu is accused of involvement and fraud by other WEFF investors, Shanghai police has accepted the case. However, the preliminary investigation concluded that Xu’s company in Shanghai did not involved in the illegal activity.
Furthermore, due to the alleged fraud was apparently took place in Beijing, the case files will be transferred to Beijing police.
It is not the first time for OKCoin to have conflict with its users. This year, OKCoin has received massive complaints about forced liquidations and irregular transactions.
On September 5, a number of 20x leverage-investors lost millions of dollars during the unexpected massive crypto price drop while the exchange platform malfunction occurred at the same time.
This kind of incident also happened on May 23 and March 30 which awakened OKCoin users from their sweet dream of getting rich over-night. They have embarked on the road to right protection.
Those investors who were “violently robbed” by OKEx’s technical bugs gather together to express their protestations. They believes that its a kind of market manipulating which leads to a great loss to the retail investors. However, unfortunately, Xu refuses to give any compensation to the victims.
“I won’t pay you for a penny,” said Xu in the police station.