The Founder Of This Cryptocurrency Exchange Is In Custody – The Funds Are Not Available
coinputin.com – Hong Kong-based cryptocurrency exchange CEO Global is having several problems thesedays. One of its founders had been taken by authorities for 15 days to help with the investigation and had no idea when he might return.
Funds Will Not Be Available For Some Time
In a statement, the company said: “money was illegally sent from international fraudsters to the bank account of one of our core founders, affected by the ongoing national crackdown on fraudulent sim cards and bank accounts. The founder was taken away for 15 days for investigation, ” it said.
The founder holds the private keys to most of the platform’s cold wallets. He said he had decided to suspend all withdrawals because the stock market is currently unable to process all withdrawals through its hot wallets.
Meanwhile, the platform will shut down all over-the-counter (OTC) trading services due to risks related to uncertainties arising from China’s regulatory policies, including national pressures.
China’s New Step
The Chinese government’s State Council announced a national crackdown on fake bank accounts and sim cards in October. “Fraudulent sim cards and bank accounts are among the key reasons that make many phone and cyber scams possible,” according to the announcement.
Most scammers, people who want to avoid revealing their identity when opening a bank account or sim card, buy existing sim cards and bank accounts registered in the name of others.
Due to the high demand for these fraudulent accounts, a sector has developed to create and sell these accounts, some of which are obtained through identity theft. In the two weeks following the State Council’s announcement, Chinese police arrested more than 4,600 people and confiscated nearly 65,000 bank cards linked to fake bank accounts, according to a report by state media CCTV.