Collin Wu, a crypto reporter from China twitted claiming that a Chinese exchange, CEO Global operations have been disabled and its founder arrested. The reporter is famous for covering interesting subjects in the Chinese crypto market.
The creator of CEO Global exchange, a firm situated in Hong Kong, has been in police custody for two weeks. Investigators, in the meantime, are looking into the case against the crypto exchange creator.
Closing of CEO Global in China
The still young and developing crypto exchange is due to be shut down in China. Collin Wu, the creator, tweeted, announcing the expected closure. The company is closing as the creator is under investigation.
Authorities arrested after Collin Wu’s bank card was suspended. There are claims that it was conducting suspicious transactions.
Suspicion of Wu receiving huge funds of “black money” resulted in the arrest. The report explained that the exchange founder received the funds in his bank card in the transaction. The police then seized the card. The inquiries will likely be over after 15 days.
Suspension of fund withdrawals causes a market uproar.
After the company got suspended, it too, took a step and suspended withdrawal services. All cryptos in the system of the exchange are therefore supposed to remain there. Collin Wu explained in the tweet that the suspension of withdrawals is because he held major reserved openers to the cold accounts.
Moving funds out of the hot wallets has been suspended as a result of the first closure.
In his tweet, Wu further reveals how some clients think this is a theft scheme. He said that these people claim that the firm is cooperating with the government to pull out this stunt.
The creator of OKEx had, too, suffered the same blow. The authorities took him into custody and detained him for two weeks. OKEx, however, resumed processing withdrawal requests as November came to a close.
Containing money laundering in China
In a move to curb laundering money, the Central Bank of China (PBOC) has cracked down this year. It, however, entrusted certain tasks to minor banks and fiscal organizations.
Chinese banks have started freezing bank cards of OTC clients, among other crypto traders. China Merchant Bank is also involved in this move.
Chinese banks did not only shake the crypto market; they also went for other suspects. They blacklisted them to cease their bank card usage.