Another Day, Another Crypto Drama
In what can only be described as the latest twist in the ongoing saga of cryptocurrency, Star Xu, the founder of OKCoin and OKEx, is reportedly under police scrutiny in China. According to a report from Sina News dated September 11, Xu has been detained due to allegations linked to digital currency fraud.
The Grapes of Wrath: Investors Speak Up
Investors from WFEE Coin, where Xu holds a share, have allegedly raised the alarm about what they claim are fraudulent practices by the company. This outcry prompted the authorities to bring Xu in for questioning at the Shanghai Weifang Xincun police station.
The Fine Print on Fraud
Xu’s connection to WFEE Coin could spell trouble for him if any wrongdoing is proven. As a shareholder, he may be held accountable for any malfeasance associated with the token issued by WFEE. However, early reports suggest that Xu’s own company might have no hand in the alleged fraud, leaving many scratching their heads. Why would they defraud investors via a Beijing subsidiary if they aren’t connected?
Trading Volume Takes a Hit
What’s more? The ripple effects are evident. In a matter of hours after the news broke, data from CoinMarketCap showed a nearly 3% dip in OKEx’s trading volume, which had been bustling earlier. Just last month, the exchange boasted trading volumes soaring to a whopping $5.7 billion—up from $2.9 billion in June!
The Waiting Game
As of now, Xu is in limbo, and he might just saunter out of the station within 24 hours if authorities can’t dig up enough evidence to keep him locked up. Ah, the joys of cryptocurrency drama!
What’s Next for OKEx?
As the dust settles, all eyes will be on OKEx. Will the exchange bounce back from this incident or will it suffer long-term repercussions from the allegations surrounding its founder? Stay tuned as this crypto story continues to unfold.
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