According to Chinese publication Sina News, excerpts from the publication which leads the Twitter account cnLedger, founder of the cryptocurrency exchanges OKCoin and OKEx Old Xu was detained by Shanghai police for questioning. According to the officer, the local police, Xu is suspected of fraud.

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):

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

The detention of Xu was made in connection with the statement of one of the investors, which was taken in the work of the police. The preliminary investigation in Shanghai revealed that the Shanghai company Xu is not connected with digital currencies. Alleged episode of fraud is also associated not with Shanghai and Beijing, in connection with which the documents in the case will be transferred there.

However, some investors said that the team coins WFEE, of fraud which, apparently, and referred to, and which may be relevant Xu, is located in Shanghai.

According to information on the exchange website OKEx (it only currently supports trading WFEE), WFEE is a sharing ecosystem on the blockchain, it is for sharing Wi-Fi channels with the use of smart contracts. Among the investors WFEE is OK Blockchain Capital venture Fund and strategic partner OKEx. For the last day in pair with the dollar, WFEE fell by 25%, for the week – 70%.

CnLedger notes that Xu went to the police last night around 10pm and will be released after the 24 hour period after 2 hours, if not found sufficient evidence linking him to the case under investigation.

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