The Chinese Exchange suspended the withdrawal of funds after the founder was arrested.

The Chinese exchange CEO Global has suspended deposit taking and withdrawal of funds following the arrest of the main founder, said journalist Colin Wu.
The bank card of the founder of the platform has repeatedly received „black“ money and the authorities have detained him for 15 days for investigation.

The Exchange stated that most of the private keys of a cold wallet were kept with the detainee, and hot wallets at this stage can no longer meet the needs of withdrawal users.

Due to regulatory risks, CEO Global also suspended its OTC platform for an indefinite period.

According to Wu, users believe that the exchange is using the actions of the authorities as a pretext to steal money.

He noted that CEO Global’s statement is very similar to the OKEx message of 16 October, when the exchange announced the suspension of withdrawal due to the loss of contact with the private key holder due to his cooperation with law enforcement authorities.

OKEx then refuted media reports that the detainee was the founder of the Star Xu Exchange.

On 18 November, Colin Wu reported that Star Xu had received „some freedom“ from the police. The next day, the exchange announced the date on which the withdrawal would resume, stating that the key holder had „completed assisting the authorities in the investigation mentioned“ and had returned to duty.

The founder of OKEx explained that he had been cooperating with the police in an investigation into a share capital merger involving his company OK Group several years ago.

Earlier, the Chinese stock exchange TokenBetter had suspended its withdrawal in connection with the authorities‘ investigation.

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