OKEx is the 2nd largest, and undoubtedly successful Chinese cryptocurrency exchange used by a large portion of crypto-lovers.
As of today(9/11/2018), news on Star Xu, the founder, has dropped in correlation to alleged charges of cryptocurrency related fraud… As released by Sina News.
If there were to be no sufficient evidence found against him, the Shenghai Weifang Xincun police stated he would be released within 24 hours. Thankfully he has been released, as the conclusion had came to his innocence.
What Exactly Caused Xu’s Arrest?
The local police were sprung into action upon receiving complaints from investors of “WFEE Coin”, stating that they had been victims of fraud. This is a coin in which Xu is a shareholder of, and therefor responsible for any fraudulent acts.
The police had concluded that his company, OKEx had not been correlated to the coin itself, due to the fact that the coins were controlled by a separate party, and only sold/traded on the OKEx exchange.
How Does This Affect Markets?
The news of Xu’s release had came shortly after OKEx’s massive volume spike this summer. As reported by Cointelegraph in August, OKEx achieved a new record high of $5.7 billion in volume, compared to it’s June average of only $2.9 billion.
Once the news broke of his detention, CoinMarketCap states that OKEx had only saw a 3% drop in trading volume over a 24 hour period.
For more information regarding how events like this can correlate with cryptocurrency prices, check out our article, “What Drives The Price of Cryptocurrency?“.