Police released OKEx exchange founder after questioning
Crypto exchange OKCoin’s founder Star Xu has been released from a police department in Shanghai after 24 hours assisting an investigation into investors’ accusations that OKEx manipulated bitcoin futures on its platform, CoinDesk reports with the reference to local sources.
On September 11, several Chinese media published that Star Xu was questioned by the police department and the case had been transferred to the police department in Beijing, together with materials gathered so far.
OKEx representative Andy Cheung posted on his Twitter that in fact Xu was the one who called the police after he was found by a group of victims of the fraud.
Police took everyone for further questioning and let them go later on. Andy Cheung mentioned that right now Star Xu was the founder of the OKCoin exchange but now is the head of OK Group. As such the company claimed Xu currently does not represent OKEx “in any way” since the exchange does not belong to the group.
the interesting part is that at the same time the investors went on to allege that their bitcoin futures positions were force liquidated on Sept. 5 when the price of bitcoin saw a major drop, but OKEx’s service crash in the meantime left them without enough time to clear their positions prior to the forced liquidation.
Due to alleged system issue, some users were not able to close positions on their own which lead to financial loses. However, the company stated that it was “not aware of such a problem.”
Soon after that OK Blockchain Capital (OKBC) Twitter account posted some information that made it clear including denial that Star Xu had anything to do with WFEE company.
It is well known that OKBC and a group of venture investors purchased WFEE startup. Then WFEE made some changes in the white paper OKBC was not aware of.
OK Blockchain Capital stated that right now it does not work with WFEE and is not responsible for the company’s activities. OKBC also announced that last month it delisted WFEE token and warned the users about the risks related to the company.