Chinese exchange CEO Global halts deposits and withdrawals after founder’s arrest

The Chinese exchange CEO Global has suspended deposits and withdrawals after the arrest of the principal founder, according to journalist Colin Wu.

Wu learned that another small Chinese exchange is suspected to be closed. CEOGlobal said that recently due to China’s card suspension operation, the founder’s bank card received multiple black money, and he has been taken away by authorities for 15 days for investigation. pic.twitter.com/Hw7S8IGjA7

— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) December 5, 2020

Black money has repeatedly flowed to the founder’s bank card, and authorities detained him for 15 days for investigation.

The exchange said that most of the private keys of the cold wallet were held by the detainee, and hot wallets at this stage can no longer meet users’ withdrawal needs.

Due to regulatory risks, CEO Global also suspended the operation of its over-the-counter platform for an indefinite period.

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

He noted that CEO Global’s statement closely resembled OKEx’s October 16 message, when the exchange announced the suspension of withdrawals due to the loss of contact with the holder of the private key in connection with his cooperation with law enforcement.

OKEx at the time denied media reports that the detained person was Star Xu, the founder of the exchange.

On November 18, Colin Wu reported that Star Xu had received \”some freedom\” from the police.

The following day the exchange announced a date for resuming withdrawals, stating that the key holder \”has finished assisting authorities in the aforementioned investigation\” and has returned to duties.

OKEx founder explained that he is cooperating with the police as part of an investigation into a capital consolidation deal involving his OK Group company several years ago.

Earlier, in connection with the authorities’ investigation, suspended withdrawals on the Chinese exchange TokenBetter.

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