OKEx founder arrested! OKEx founder arrested and users couldn’t cash their tokens early Friday. Mingxing Xu, aka Star Xu, was reportedly being questioned by police.
Star Xu was reportedly being questioned by police, according to Chinese news agency Caixin. OKEx issued an “Announcement on Suspension of Withdrawals” of crypto assets on its platforms. The digital coin, OKB, fell nearly 11%.
Key personnel are said to be cooperating with an investigation into Star Xu. The company has said that “other functions of OKEx are guaranteed to be normal… asset security is not affected.”
Some rumors are abounding that Xu may be held to help an investigation into the backdoor listing of OK Group in Hong Kong in 2019.
Caixin also reported that Xu had been arrested at least a week ago and had not appeared at the company for a few days. He was also part of a fraud investigation in 2018.
What does this mean for crypto in China? It shows that everything in China regarding the Blockchain as an industry is that it must be decentralized. It proves that only when there are no key owners can it be immune from political influence and interference.
Big crypto traders are moving their coins out of OKEx. Some $56,567,316 was transferred out of OKEx to Binance today.
OKEx is one of China’s three biggest exchanges, with more than 6 billion in daily trading volume. Around 1.1% of the circulating Bitcoin supply is held in OKEx cryptocurrency wallets.
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