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On September 11, and according to the local Chinese newspaper Sina News, Star Xu, the founder of the OKEx and OKCoin cryptocurrency trade, was arrested by Shanghai police officers. Xu was allegedly involved in a fraudulent scheme concerning the WFEE currency. Xu, being a shareholder of the company behind the project, has been arrested and subjected to a series of interrogations to find out that it is a scam.
cnLedger a Chinese crypto news and blockchain outlet, also reported the news via twitter as follows:
Star Xu, founder of OKCoin / OKEX, is being investigated by the Shanghai police. According to Lu Jun, a local PD official, Xu was suspected of fraud accused by investors. SH police accepted the case.
After an intense demand, the company of Star Xu was found unrelated to the alleged scheme. cnLedger would update the development as follows:
Preliminary investigations by the Shanghai police show that the Xu company in Shanghai is not related to the digital currency. The alleged fraud was not conducted in Shanghai but in Beijing, so the documents will be handed over to the Beijing police.
Issued after 24 hours
The Shanghai police could only have Xu for 24 hours. Incoming reports by cnLedger indicate that it was released only 3 hours ago. cnLedger was the first to give the news as can be seen in the tweet below.
Update: OKEX Star Xu was released by the Shanghai police at 9:30 pm https://t.co/aieEE4m3Zp
– cnLedger [Not giving away ETH] (@cnLedger) 11 September 2018 [19659011] Continuous Crackdown of China
This incident is the positive proof that the Chinese authorities are seriously intent on repressing the activities of ICO and crypto in the country. The main reason for the ban on all crypto and ICO activities in the country is that the government has noticed that the amount of fraudulent activity is high and that its citizens have lost many funds in this way.
Part of the government's crackdown includes restricting Internet access to foreign cryptographic exchanges and requesting the WeChat popular messenger app to block certain accounts. However, the citizens of the country have proven to be resistant to the ban and some have moved their crypto activities outside the country's borders and use VPN (Virtual Private Networks) to exchange cryptocurrencies online.
Disclaimer: This article is not intended to give financial advice. Any opinion here should be taken as well as it is. Perform your research before investing in one of the many cryptocurrencies available.
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