The founder of the world's second largest crypto exchange was arrested by the Shanghai police - such headlines appeared yesterday on social networks and local media. In fact, the CEO and founder of the OKCoin and OKEx cryptocurrency exchanges, Star Xu, was spotted at the local Shanghai police station. On the evening of the next day, Star Xu left the police station, which means that he was not charged within 24 hours, according to the law.
It later became known that Mr. Xu was only questioned by investigators in connection with his potential participation in the fraudulent activities of WFEE Coin, since he is one of the shareholders of the company and was not arrested.
WFEE issued its own tokens, which were sold through the website. The creators of WFee coin announced the development of the world's first system for sharing Wi-Fi channels with smart contracts, based on blockchain technology, and offered a convenient, free and effective online environment through WFee. Among the investors in the project were OK Blockchain Capital and strategic partner OKEx.
According to the Shanghai police, many complaints were received from users accusing the project of running a fraudulent scheme and the authorities began an official investigation into the WFEE coin project.
As a shareholder of WFEE, Xu can be held responsible for any fraudulent activities regarding this investment scheme. However, the investigation shows that Star Xu's company in Shanghai is not responsible for issuing the currency. According to the investigation, the fraudulent schemes were carried out in Beijing and the materials will be transferred to the Beijing police.
Officially, the CEO of the largest crypto platforms has not yet commented on communication with the police, but the news immediately affected the unstable market situation. Altcoin WFee, which is only listed on OKEx, fell by 70%.
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