Media: Former Huobi and OKCoin CFOs accused of wrongdoing in Hong Kong-listed company purchases

A former Huobi employee has initiated a Chinese investigation into the exchange’s former chief financial officer Chris Li, accusing him of the illegal purchase of two Hong Kong-listed companies, according to journalist Colin Wu.

Wu learned that on the 4th, the original OK, Huobi’s CFO Chris Li was accused by the former Huobi employee, claiming that he purchased Hong Kong listed companies for two exchanges and casued the investigation by the police. pic.twitter.com/QWmbr0yGyo

— Colin Wu（WuBlockchain） (@WuBlockchain) November 4, 2020

Prior to joining Huobi, Chris Li held the positions of CEO of OKEx and chief financial officer of OKCoin. He conducted deals in the interests of the latter and Huobi.

Wu noted that, according to publicly available information, for listing in Hong Kong via a reverse takeover, OKCoin and Huobi spent 480 million HKD ($61.89 million) and 600 million HKD ($77.36 million) respectively.

The journalist contends that the deals were privately arranged with yuan-based settlements, with the participation of an underground bank from Shanxi province. The exchanges allegedly turned to the illicit financial institution to convert cryptocurrency into fiat, Wu contends.

Earlier Colin Wu linked the recent drop in Huobi’s token to reports of an open Chinese police investigation into the exchange’s chief operating officer. Huobi denied the information. pic.twitter.com/ovxZjxDaAf

— Colin Wu（WuBlockchain） (@WuBlockchain) November 5, 2020

Li said he did not assist OKCoin in acquiring a public company, and that Huobi conducted the deal in accordance with regulatory rules.

Li joined Huobi in May 2018, immediately after leaving OKEx and OKCoin. In August of that year he left his post at Huobi, according to 8btc.

Earlier Colin Wu linked the recent Huobi token slump with reports of an open Chinese police investigation into the exchange’s chief operating officer. Huobi denied the information.

On October 16, OKEx suspended withdrawals, explaining it as due to loss of contact with the holder of the private key, who is cooperating with law enforcement. Media reported the founder of the platform Star Yu’s arrest, but an OKEx spokesman denied this in an interview with ForkLog.

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news and polls.