The Chinese exchange has suspended withdrawals after the arrest of the founder

Chinese exchange CEO Global suspended accepting deposits and withdrawing funds after the main founder’s arrest, journalist Colin Wu said.

The platform founder’s Bankcard was repeatedly credited with “black” money, and the authorities detained him for 15 days to investigate.

The exchange stated that the detainee kept most of the private keys of the cold wallet, and hot wallets at this stage can no longer meet the needs of users withdrawing funds.

Due to regulatory risks, CEO Global also suspended its OTC platform indefinitely.

According to Wu, users believe that the exchange uses the authorities’ actions as a pretext for stealing money.

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

OKEx then denied media reports that the detainee is the founder of the exchange Star Xu.

On November 18, Colin Wu reported that Star Xu had received “some freedom” from the police. The next day, the exchange announced a date for resuming withdrawals, stating that the key holder “has finished assisting the authorities in the mentioned investigation” and has returned to duty.

The OKEx founder explained that he is working with the police to investigate the merger of equity capital involving his company, OK Group, several years ago.

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