Just coming in fresh right now from Shanghai, local sources and social media rumours claim that the CEO of OK Coin and OKEx (World’s Second Largest Exchange), Star Xu, was taken in for ‘interrogation’ by the Shanghai Police, due to fraud allegations associated with WFEE Coin, of which, Xu is a stakeholder. He was however released at 9:30pm local time in Shanghai, half an hour before his custody limit ended.
Xu was taken in for questioning regarding WFEE coins, because he is being accused of fraud, by the investors. Now the law clearly states that if no sufficient evidence is presented against a person, within 24 hours of the detainment, then that individual has to be cleared of all charges and let go. Users on Twitter have constantly been tweeting updates on the case.
Update: Star Xu of OKEX was released from Shanghai police at 9:30pm https://t.co/aieEE4m3Zp
— cnLedger (@cnLedger) September 11, 2018
Although, Xu has been released, Lu Jun, the supervisor of Shanghai Weifang Xincun Police Station, made a statement that the Shanghai police have made a case against him and the criminal investigation department has looked into it. Now the confusion here is that Xu has a company in Shanghai, but that company has no association with the WFEE coins. It has thus been concluded, that this case is under the jurisdiction of Beijing police and is now being handed over to Beijing Haidian District Public Security Bureau. The specific unit that will be handling this case is the Beijing Municipal Public Security Bureau.
This controversy comes in amidst strict regulations in China over cryptocurrencies. It is for us to sit back and watch how the events unfold now in Beijing.
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