cnLedger, a Chinese crypto, and Blockchain news outlet reported the news via Twitter:
Star Xu, founder of OKCoin/OKEX, is being investigated by Shanghai police. According to Lu Jun, officer at the local PD, Xu was suspected of fraud accused by investors. SH police has accepted the case.
Another tweet by cnLedger later stated that, after an intense questioning session, Star Xu’s company was found not related to the alleged scheme.
Preliminary investigation by Shanghai police shows that Xu’s company in Shanghai is not related to digital currency. The alleged fraud was not conducted in Shanghai but in Beijing, therefore documents will be handed to Beijing police.
Update: Star Xu of OKEX was released from Shanghai police at 9:30pm https://t.co/aieEE4m3Zp
— cnLedger (@cnLedger) September 11, 2018
China’s Cryptocurrency Crackdown
The Chinese government has ordered a ban on all crypto and ICO activities in the country, citing that authorities have noted an increase in the number of fraudulent activities and the citizens have concurrently lost lots of funds this way.
The incidence with Star Xu outlines they vigor with which the Chinese authorities are cracking down on ICO and crypto activities in the country. The government has already restricted internet access to foreign crypto exchanges and has requesting popular messaging app of WeChat, to block certain accounts. Many companies like Baidu, Alibaba, and Tencent have Block Cryptocurrency Forums, following the government’s decision.
However, the country’s citizens haven’t accepted the new regulations and some have either moved their crypto activities outside the country’s borders or started using VPNs (Virtual Private Networks) to trade cryptocurrencies online.