Founder of cryptocurrency market OKCoin Star Xu was released from the Shanghai police station after hours of questioning, main theme of which were investors' complaints on manipulation of subsidiary company OKEx with bitcoin futures.
On Tuesday, Chinese business magazine Caixin published news about Xu, who got into the Shanghai police station for questioning by investigators on September 10. Later Cailian Press magazine reported, that Xu had been released after 24 hours, and his case together with all gathered materials had been transferred to the Police Department of Beijing.
According to one of the Shanghai police's representatives, further investigation on this case depends entirely on the Beijing Police Department.
As Caixin claims, Star Xu's case concerns complaints of investors, who lost large amounts of money on OKEx because of system failure, allegedly organized by the platform itself. Investors' positions on bitcoin futures were liquidated on September 5, simultaneously with the depreciation of cryptocurrencies. In this, trade platform stopped responding, due to which investors were unable to close positions.
It's noteworthy, that the administration didn't post any announcements on an occurred failure on OKEx. Press Secretary of the platform, in turn, said, that he knew nothing about an incident.
According to Caixin, on Monday, a group of investors calculated Star Xu's location on their own, having followed his personal trainer. Investors called Xue on a personal conversation, but he preferred to call the police independently, who took him and all uninvited guests to the station. On Tuesday morning, a few more investors arrived at the Shanghai police station, who also had lost their assets due to a failure of OKEx.
Representative of the platform said:
"Being in Shanghai, Xu had been threatened by a gang. Needing help, he called the police. Shanghaipolice officers, having arrived at the scene, invited all parties to a conflict to department. After arrest of a gang and testimony Xu left the police station."
A company representative added, that despite Xu was the founder of OKCoin market, currently he holded the position of the OK Group's head and wasn't related to the OKExplatform, because it didn't belong to the group. In his address to the cryptocurrency media representative also expressed regrets, that "the story of Xu's arrest was turned upside down."
However, the Chinese database of business registration has other data, according to which OKEx and OKCoin belong to the same organization.