Shanghai Police Questioning Star Xu, Founder of World’s Second Largest Crypto Exchange

Shanghai police have brought in Star Xu, who has been allegedly involved in a fraudulent scheme concerning WFEE coin, of which he is currently a shareholder. Once officers found Xu, they questioned him to address the allegations.

Xu’s company issued WFEE, its native token and sold it through its website. According to Shanghai police, they received various complaints concerning the venture and its potentially fraudulent practices. Currently, authorities are investigating the matter.

Star Xu is the main person of interest. Many cryptocurrency enthusiasts know him as the founder of exchanges such as OKEx and OKCoin, which are some of the largest exchanges in the world. Given that Xu is the company’s shareholder, he can potentially be held responsible for any of the company’s fraudulent practices.

There has been some pushback concerning Xu’s involvement. In one statement released by an anonymous source:

“[t]he WFEE team’s exact 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.”

News of Xu’s arrest has led to ripples in the community and additional uncertainty concerning the currency’s direction.

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.

Source (in CN): https://t.co/Y6fIt8Sz49https://t.co/ItVfMZ8ZoD pic.twitter.com/Gquv9n7iKs

— cnLedger [Not giving away ETH] (@cnLedger) September 11, 2018

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.

— cnLedger [Not giving away ETH] (@cnLedger) September 11, 2018

However, several investors argued that the team behind the WFEE coin which they purchased was based in Shanghai, and Xu is WFEE's shareholder. Xu was taken away by the SH police at 10pm Sept 10th to assist the investigation, which leaves 3 more hrs before the 24 hr limit.

— cnLedger [Not giving away ETH] (@cnLedger) September 11, 2018

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