The founder of cryptocurrency exchange OKex has been taken into custody by Shanghai police officials. Star Xu is allegedly involved in a fraudulent scheme regarding WFEE Coin. As Xu is a shareholder in this potentially fraudulent company, he is put through a round of questioning to get to the bottom of these rumors.
Star Xu and WFEE Coin
Given the vast number of fraudulent schemes in the cryptocurrency world, police arrests are becoming all too common. In the case of WFEE, the company issued native tokens which were sold through the website. Various complaints have been received regarding this venture being potentially fraudulent. The Shanghai police forces are officially investigating the matter at this time.
One person of interest regarding WFEE is Star Xu. Cryptocurrency enthusiasts know him as the founder of OKCoin and OKEx. As a shareholder of WFEE, he can be deemed responsible for any fraudulent efforts regarding this investment scheme. However, the investigation has shown Xu’s company in Shanghai is not responsible for issuing the currency. Instead, that part of the business was handled in Beijing.
The WFEE team’s location seems to be in Shanghai. As such, it makes little sense for them to defraud investors through a Beijing subsidiary. The exact nature of Star Xu’s involvement remains unclear at this time. He is expected to be either released or remain in custody after the initial 24-hour period expires in a few hours.
This new development causes some unrest in the cryptocurrency world. Given the current market conditions, a shakeup like this is the last thing cryptocurrency needs. Even so, if Star Xu is involved in a fraudulent investment scheme, he will need to pay the price for those actions. Until proven otherwise, he is still in the clear and may have simply been tied to a company with less than honest intentions.