OKEx Responds to WEFE Cryptocurrency Case as CEO is Set Free from Local Investors Claims
OKEx Chief Denies Claims of Fraud as Police Find No Connection with WEFE Cryptocurrency
The Chinese crypto community has for the past few days, since Tuesday this week, seen trending photos of Star Lu, the founder of OK Group. The CEO of the company has been accused of committing fraud on investors as she held the WEFE cryptocurrency that she released into the market without proper legislation. OK Group owns one of the largest cryptocurrency exchanges, OKEx which is now under investigations after the said fraud was committed.
Reports emerging from trusted sources across the Chinese cryptocurrency communities reported the founder and CEO of OK Group, Star Xu of complaints arising from investors in a local Shanghai cryptocurrency. Investors in the local currency, WEFE accused Xu of releasing the cryptocurrency to the market at a time when she was the shareholder of the coin. The matter which is currently under investigations with the police department in Shanghai has raised many questions on the credibility of OK exchanges, one of the most reputable cryptocurrency exchanges available.
CNLedger, a trusted news source in the Chinese cryptocurrency community, reported that Xu was investigated by police officers in Shanghai after investors submitted complaints regarding a local cryptocurrency called WFEE. Investors claimed that Xu was a shareholder of WFEE and involved in the process of releasing the WFEE coin to the market.
According to one source, Sina News, Star Xu is currently under investigation after she was suspected of committing fraud by the investors after releasing the coins to the market. A head of the Shanghai Police, Lu Jun talked to the reporters saying the matter in their hands, but preliminary investigations carried out by Shanghai police show that Xu’s company in Shanghai is not in any way related to the WEFE digital currency.
However, the fraud was determined to have occurred in Beijing and not Shanghai hence the transfer of the case to the Beijing Police department. No reports have yet been received from the Beijing police regarding the issue.
OKEx Responds to The Accusations
The Okex team has since been forced to update the status of the ongoing confusion to clear its founder’s name. OK Blockchain Capital, is the OKEx subsidiary that released an official statement to set the record straight on allegations against Mr. Xu. OKEx then hared its strategic partners’ official statement to clear the WFEE issue surrounding the company’s head.
According to the OK Blockchain Capital statement, they had acquired a stake of the WFEE project as investors. This was back when the project had partnered with a popular WiFi services linking entity known as the ‘WeShare WiFi’. With time, WFEE scaled its assets and acquired other portfolios including those of OK Blockchain Capital.
Therefore, the OKBC defended Xu claiming he had no direct involvement in the ownership of WFEE let alone its token distribution. The team went to further state that they had no rights to oversee the WFEE operations according to the incorporation guidelines set for both companies.
The OK team insisted on Xu’s innocence by arguing that the OKEx founder is being a target of fake news within the crypto arena. This was based on the fact that no equity in WFEE’s portfolio was under Mr. Xu. In addition to the above sentiments, the team noted that OKEx had indeed issued a warning against the WFEE digital asset’s uncertainty to a point of making it a top ‘delisting’ choice from the exchange.
Xu would already be in China’s police custody if he held any percentage of the WFEE project. This is because of the strict Chinese approach on ICO’s which prohibits the issuing crypto coins to obtain initial funding. The WFEE token had been integrated with the OKEx exchange for trading back in March 2018, a time when the anti-ICO laws were already functional.
Given the nature of the OK’s explanation statement, Xu is an unlikely jail candidate as nothing links him to WFEE. OKEx is also very likely to survive this wave of complaints brought forward by investors within its jurisdiction.
WEFE Delisted From the OKEx Exchange
Back on August 10, WEFE cryptocurrency faced delisting from the OKEx exchange with the company focusing on maintaining a healthy trading environment on the platform. The team also gave a warning against participating in trading the coin after carrying out extensive market research on the project as it does with all projects on trading on the platform.
“To maintain a healthy trading environment and pleasant trading experience on OKEx, our auditing team has carried out comprehensive monitoring on the market and projects,” the OKEx team said at the time, after delisting WFEE on its platform.