The founder of the world’s second largest crypto exchange OKEx and provider of OKCoin, Star Xu has been accused and kept in custody in China following the suspected digital currency fraud as per the valid source of local news outlet Sina News as on 11th September.
Xu has been in the confinement in the Shanghai Weifang Xincun police station and expected to release within 24 hours based on the insufficient evidence for his involvement in the suspected fraud as reported by the news outlet.
Amid this, ZeroHedge reported that investors in WFEE Coin in which Xu is one of the shareholders executed complain to the police saying that the company is involved in the fraudulent practices and manipulation. Based on this police has held Xu in custody by questioning pertaining to the matter. Beside this, ZeroHedge commented in its report that WFEE issued tokens and organized its selling on its website. Xu, as a WFEE shareholder, must be held responsible for any kind of commitment of fraud pertaining to the company.
The apparent investigation has revealed that Xu’s company in Shanghai is not associated with issuing the WFEE Coin as reported by ZeroHedge. Further to the subject matter, ZeroHedge claimed the matter with little sense for them to cheat investors through a Beijing subsidiary.
The news of the confinement of Xu comes immediately after OKEx volumes flourished this summer. As per the valid report from Cointelegraph in August. OKEx is expected to have recorded $5.7 billion in July 2018 in terms of volume than $2.9 billion in June.
Amid the news of Xu’s detention, CoinMarketCap data marked the OKEx’s trading volume slashed almost by 3 percent over the 24 hours by trading around $714 million on a single day.