Chinese Police to Bust OKEx Founder

But looks like, there's no need for panic - media reports that police let him go without charges
12 September 2018   961

The Shanghai police detained the founder of the OKCoin exchanges and OKEx Star Xu, presumably in connection with the investigation of cryptocurrency fraud. This is reported by the local newspaper Sina News.

Law enforcement agencies of Shanghai received complaints from investors on the WFEE crypto-currency company, of which Star Xu is a participant. Police detained the founder of the Chinese exchanges for interrogation in the investigation of this case.

Sina News reports that if the police do not file charges against Stary Xiu for participation in the fraudulent scheme, he will be released within 24 hours.

But today Star Xu was discharged. He is supposed to help the investigation of investors' complaints about the cryptocurrency company WFEE. This is reported by CoinDesk with reference to local publications.

As far as I know, Star called the police for help when he was surrounded by a group of people in Shanghai. The police arrived on the scene and invited all of them to the police station.
 

Andy Cheung at Twitter

OKEx Team

The police brought everyone to the station to clarify the circumstances, and then released the founder of OKCoin and OKEx without charge. Andy Cheung also noted that Star Xu at the moment has nothing to do with OKEx.

It is noteworthy that on the same day several OKEx clients applied to the Shanghai Police Department. They reported that on September 5, during the fall of the price of the first cryptocurrency, their BTC futures positions on the exchange were forcibly liquidated.

Due to a bug on the platform, which users were not warned about, investors could not close positions on their own, which led to financial losses. At the same time, the press secretary of OKEx reported to CoinDesk that the company was not aware of the problematic incident.

Shortly after, in Twitter-account of the venture fund OK Blockchain Capital (OKBC) and partner of OKEx published a series of tweets that shed light on the situation. In particular, the fund denied any connection between Stuart Xue and WFEE.

OK Blockchain Capital Twitter
OK Blockchain Capital Twitter

It is known that OKBC together with a group of venture investors acquired a start-up WFEE. However, soon WFEE changed the original white paper, which OKBC representatives were not notified about.

OK Blockchain Capital stated that at the moment it does not participate in the WFEE project and is not responsible for the results of the company's activities.

In another tweet, OKBC reported that last month OKEx conducted delisting of the WFEE token and warned users about possible risks associated with the company.

The case of WFEE was sent to the Beijing Police Department.

OKEx Ex-CEO to Intend to Raise $40M

Funds are needed for the new exchange called ACDX, which will offer  futures, options, revocable bear/bullish contracts and more
06 February 2020   629

Andy Cheung, who until recently was the operating director of the OKEx cryptocurrency exchange, will open a new derivative trading platform ACDX by the end of the first quarter, CoinDesk reports. The exchange will offer its clients futures, options, revocable bear / bullish contracts, debt contracts and fixed coupon notes.

One of our main goals for the exchange is to provide retail investors with ... structured products that are more commonly used by accredited crypto investors and wealth managers.

 

Andy Cheung

Former chief operating officer at OKEx

In the future, ACDX plans to reach a global level, but first of all it will gather a client base in Asia, using the connections of Cheung and partners in Hong Kong and China. In preparation for the launch, she intends to raise $ 40 million through the sale of tokens and shares in her business to crypto funds, private investment firms and family capital management companies in Europe and Asia. 

We have over $4 million so far and most of the money comes from our own funds. We are in talks with potential investors and likely to announce new investments in the next two months.

 

Andy Cheung

Former chief operating officer at OKEx

To date, ACDX has hired more than 25 employees, including eight developers who are preparing the trading platform for launch.