Categories: ICO

OKEx Clarifies Alleged Arrest of CEO: No Connection With Crypto WFEE

Click here to view original web page at www.ccn.com
Advertisement

On September 11, photographs of Star Xu, the founder and CEO of OK Group, the parent company of crypto exchange OKEx, being investigated by Shanghai police circulated around online cryptocurrency communities.

CNLedger, a trusted news source in the Chinese cryptocurrency community, reported that Xu was investigated by police officers in Shanghai after investors submitted complaints regarding a local cryptocurrency called WFEE. Investors claimed that Xu was a shareholder of WFEE and involved in the process of releasing the WFEE coin to the market.

“Sina News: 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. 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,” CNLedger reported.

OKEx Responds

On September 13, OKEx, the world’s second largest cryptocurrency exchange behind Binance, publicly shared the official statement of OK Blockchain Capital, a strategic partner of OKEx and a subsidiary of OK Group, which directly addressed the alleged connection between Xu and WFEE.

The OK Blockchain Capital team stated that it invested in WFEE as an institutional investor when WFEE was a partner of WeShare WiFi, a global leading WiFi sharing company. Eventually, as WFEE grew, it acquired the investments of OKBC and other investment firms.

As such, OK Blockchain Capital stated that it has no authority over the operations of WFEE and that Xu has never been a shareholder of WFEE, refuting reports that Xu was allegedly involved in the token distribution of WFEE.

“The rumor that OK Group founder Star Xu being a shareholder of WFEE is fake. Mr. Xu has no equity relationship with WFEE and its company. We notice that the OKEx exchange has warned it users of the potential risk of WFEE last month and disclosed WFEE in their first OKEx Token Delisting / Hiding Guideline,” the OK Blockchain Capital team said.

If Xu had been involved as a shareholder at any point in the company’s history, the Chinese police could have detained Xu for participating in the illicit distribution of securities and for being involved in an initial coin offering (ICO), which is strictly prohibited in China, given that OKEx had listed WFEE in March.

However, given that Xu was not involved directly in the business of WFEE and a subsidiary of OK Group invested in WFEE as an institution, it is unlikely that Xu nor OKEx will face any consequence from the complaints filed by local investors.

Token Delisting

As OK Blockchain Capital said, OKEx also delisted WFEE and warned users against the cryptocurrency on August 10.

“To maintain a healthy trading environment and pleasant trading experience on OKEx, our auditing team has carried out comprehensive monitoring on the market and projects,” the OKEx team said at the time, after delisting WFEE on its platform.

Still, it remains unclear whether the decision of the exchange to list WFEE in march could be an issue for the Chinese government, even though OKEx is based in Hong Kong, outside of the mainland.

Featured image from Shutterstock.

Follow us on Telegram or subscribe to our newsletter here.

Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama
Tags: coin crypto cryptocurrency initial invest offering

Recent Posts

  • Bitcoin Business

Rumors CFTC Investigating Bitmex Amid Speculation of Market Manipulation

United States’ Commodities and Futures Trading Commission is apparently investigating Bitmex according to unnamed sources. Bloomberg says :“The months-long CFTC… Read More

3 hours ago
  • Bitcoin Business

Bitcoin Mining Helps Oil Companies Reduce Carbon Footprint

Natural gas acquired as a byproduct of oil extraction has become synonymous with wasted energy. In certain areas, drilling companies… Read More

3 hours ago
  • Bitcoin Business

Crypto Exchange BitMEX Under CFTC Investigation Over US Users: Bloomberg

The U.S. Commodity Futures Trading Commission (CFTC) is reportedly probing crypto exchange giant BitMex. | Source: YouTube/BitMEX The US Commodity… Read More

3 hours ago
  • Bitcoin Business

Pro-Bitcoin Ron Paul Agrees with Trump Over ‘Clueless’ Fed

Donald Trump has gained an unlikely ally in delivering criticism against the central bank. | Source: Getty Images/AFP/Shutterstock/AFP; Edited by… Read More

3 hours ago
  • Bitcoin Business

‘Tip Trump’ Meme Targets POTUS While BAT Cryptocurrency Soars 19%

The BAT cryptocurrency gained 19% after its integration onto a gamer streaming site. Meanwhile, a meme was born as Trump… Read More

3 hours ago
  • Bitcoin Business

China’s Blockchain Industry, 2019 – By Separating Crypto-Currencies from the Underlying Blockchain Technology, China’s Government Helped People Focus on Blockchain Solutions for Various Industries – ResearchAndMarkets.com

DUBLIN--( BUSINESS WIRE )--The "China Blockchain Industry" report has been added to ResearchAndMarkets.com's offering.This report provides a complete and detailed… Read More

3 hours ago

This website uses cookies. We use cookies to collect data about your interaction with our website. The main purpose of collecting information with these cookies is to improve your experience with our site. For more information we encourage you to read our privacy policy.

Read More