OKEX Founder Arrested and Detained in Shanghai Over Alleged Involvement in the WFEE Coin Fraud
The founder of cryptocurrency exchange OKEx and OKCoin has been arrested by Shanghai police due to alleged involvement in the WFEE Coin.
Xu was taken away by the SH police at 10 pm Sept 10th to assist the investigation, which leaves 3 more hrs before the 24 hr limit.
It is believed that the case relates to fraud against Xu, accused by investors connected to the $WFEE coin.
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.
— cnLedger [Not giving away ETH] (@cnLedger) September 11, 2018
Although it’s not clear how deeply Xu was involved in the scam, the complaint based on which the Shanghai police held Xu, is that WFEE token was sold to investors via its website and it was reportedly a sham.
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.
Several investors, however, argued that the team behind the WFEE coin which they purchased was based in Shanghai, and Xu is WFEE’s shareholder.
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