OKEx Founder Star Xu Released From Police Questioning, Denies Fraud Charges

Cryptocurrency exchange OKEx founder Star Xu has today, September 12, hit back at allegations of fraud after conflicting reports over why Chinese law enforcement summoned him to a police station for 24 hours Monday.

Alleged illicit activity on the part of WFEE had led those affected to seek justice, whereupon they alerted police in Shanghai who brought in Xu to assist in their operations.

A photograph of a police report about Xu on local news outlet Sina Technology appeared to confirm that the police had been notified at 17:59 on September 10.

Image of police report allegedly involving Star Xu's detention.

At the same time, alternative sources in China claimed investor dissatisfaction was linked to OKEx itself and alleged problems caused by reported system crashes.

OK Blockchain Capital also tweeted that Xu is not a shareholder of WFEE. In regards to the other allegations involving OKEx, local news outlet Jiemian reported that seven out of a total of three hundred investors who had allegedly "Suffered heavy losses" on OKEx had reached a form of settlement with Xu already, a claim supported by Cointelegraph's Chinese sources.

"In Shanghai, someone reported that I was defrauding. I went to the police station to explain the situation and proved to the police that I did not swindle."

"While Star was invited to help with the investigation and those people was detained, they raised a fraud complaint against Star. Star stayed to clarify and then left afterwards."

Xu gave particular attention to complaints of the losses incurred system crashes on OKEx, which were allegedly responsible for a total economic loss of "Around 300 million yuan," as Jiemian reported.

As Bitcoin tumbled September 5, OKEx platform failures are alleged to have left investors unable to close or otherwise salvage their positions, with losses all the more acute in the case of leveraged trades.