A few days ago, Star Xu – the founder of OKEx and CEO of OKCoin – was brought in for questioning by the Shanghai police regarding a WFEEcoin crypto project scam case.
As local media have reported, all files related to the case would be forwarded to the Beijing police, since the alleged fraud occurred in Beijing.
Furthermore, a lot of individuals who invested their money in the WFEEcoin crypto project reported it as a scam to the Shanghai police who took it upon themselves to investigate the claims.
Based on information found on coinlibo.io, the coin started to trade largely on OKEx last March. Surprisingly, the coin’s value – which was at par with bitcoin and ethereum – took a 90% dive in price, crashing from $.00033 per coin to $0.00012475.
Meanwhile, Andy Cheung, who is the OKEx Head of Operations has urged the general public via twitter to be open-minded and verify facts before taking sides.
Moving away from Mr. Cheung’s attempted damage control, it appears that this isn’t the first time OKEx will rub its name in the mud. Some time ago, OKEx has been in the news for compelling a $420m clawback on their investors.
Moving on, OKEx announced its plans to expand its reach to Malta, regardless of Star Xu’s detainment that went viral due to the fact that it occurred at a time when China has intensified its ban on ICOs and crypto exchanges. In fact, sometime last month, the South China Morning Post made clear that the Chinese government decided to blacklist approximately 124 websites operated by offshore cryptocurrency exchanges, to ban sites related to ICOs, as well as payment gateway companies from using crypto as a means of payment.