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OKX Founder Could Be Under Investigation by US Authorities


Online reports suggest that Mingxing Xu, commonly referred to as Star Xu, the founder of OKX, is reportedly under investigation in the United States.

Xu swiftly refuted these allegations, expressing his frustrations with the ongoing FUD across social media.

Rumors began swirling in the Chinese crypto community when Alvin, a prominent figure, fielded inquiries about Xu’s supposed arrest in the US. Alvin promptly debunked the rumors, suggesting the news was a potential ploy to manipulate OKX’s native token, OKB.

“Many people asked me today if it is true that there are rumors that Xu Xingxing was arrested by the Americans. I think it is most likely a rumor. They want to force OKB to be raped,” a translated version of his post reads.

OKB’s price had seen wild volatility during the past week, dropping to as low as $54 before rebounding to its current value of $57 as of press time, according to BeInCrypto data.

OKX's OKB Token Price
OKX’s OKB Token Price. Source: BeInCrypto

Meanwhile, OKX’s partnership lead, Gala Wen, echoed Alvin’s sentiments, dismissing the claims as false. Wen emphasized Xu’s active role in the company’s US operations, rebuffing any notion of his involvement in legal trouble.

“It’s so fake. The arrests in the United States are public information and anyone can check it on the government website. The American office is very big, and the boss personally comes to handle business. We work hard every day in high spirits,” Wen said.

Notably, this is not Xu’s first brush with controversy. In 2020, he faced scrutiny in China, coinciding with his exchange’s temporary suspension of crypto withdrawals, sparking market concerns.

Interestingly, the current rumors arrive at a time when OKX faces increased regulatory scrutiny across various jurisdictions. Last month, South Korean authorities initiated a criminal probe into OKX’s operations within the country. The authorities accused the exchange of undisclosed activities and employing domestic influencers for promotional campaigns. Additionally, OKX ceased operations in India due to the country’s unfavorable regulatory environment.

While OKX continues to navigate these global challenges, the US regulatory environment remains hostile toward the emerging industry. Regulatory bodies like the Securities and Exchange Commission (SEC) have pursued legal action against major exchanges, including Binance, Coinbase, and Kraken, prompting some firms to exit the US market.

Top crypto platforms | March 2024

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Conclusion

In conclusion, the recent rumors surrounding the investigation of Star Xu, the founder of OKX, in the United States have been refuted by Xu himself and other members of the company. Alvin and Gala Wen have both dismissed these allegations as false, emphasizing Xu’s active role in the company’s operations and maintaining that the rumors are likely an attempt to manipulate OKB’s token price. This situation comes at a time when OKX is facing increased regulatory scrutiny globally, with recent criminal probes in South Korea and challenges in India. As the cryptocurrency industry continues to navigate regulatory challenges, it is important for investors to stay informed and make decisions based on verified information.

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