Police in Shanghai detained the founder of the cryptocurrency exchanges OKCoin and OKEx old Xu (Xu Star) in connection with the investigation into the cryptocurrency fraud.

Confirmed Start Xu – Founder of the @OKEx_ @OKCoin @starokcoin , was taken by Chinese police to help investigate suspected #crypto fraud. He’s still at police station under investigation. If there is no sufficient evidence, he will be released after 24 hours. #bitcoin #blockchain pic.twitter.com/8WfITefSMh

🎀 (@cryptovenus) September 11, 2018

According to several sources on social networks, including Sina News, the Old Xu helps the police to investigate the fraudulent activity on the part of the project WFEE coin, to which he allegedly was.

According to the Twitter feed cnLedger, the preliminary investigation showed that Xu company registered in Shanghai who were not involved in illegal activities.

“Alleged fraud did not occur in Shanghai, and in Beijing, so the documents will be transferred to Beijing police,” – said the publication.

Preliminary investigation by police shows that Shanghai s Xu’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

Several defrauded investors claim that the team WFEE coin was in Shanghai.

Police arrested old Xu on 10 September. If it is not charged with any crime, he is released after a maximum of a day after arrest.

The photographs published in social networks, Xu is no restraints and can move freely that hardly speaks about the arrest.

Recall that last month exchange OKEx introduced a mandatory verification to withdraw funds.