The article states that on the evening of September 10, Xu was arrested and taken to the Shanghai Weifang Xincun police station to answer questions concerning a digital currency fraud investigation. Xu will reportedly be released within 24 hours if sufficient evidence of his involvement cannot be found.
Various outlets have reported that this is in connection to WFee, a wifi-sharing project with an associated token. Shanghai police have apparently received multiple complaints about the project, which OK Blockchain Capital invests in.
However, Tim Byun, OK Group’s chief risk officer and head of government relations, told ETHNews that reports of Xu’s arrest constitute “fake news” and that Xu, in fact, was seeking assistance from police. He pointed to another tweet suggesting that Xu asked the police for support after being surrounded by people who had lost money in crypto on the OKEx exchange. The values of bitcoin, bitcoin cash, Ethereum, and Litecoin – the four tokens supported on the exchange – have fallen precipitously in the last week.