Hong Kong-based Cryptocurrency Trade’s Founders has been Taken Away

December 7, 2020


Hong Kong-based cryptocurrency trade CEO Global stated, one of its founders has been taken away by the authorities on Saturday and it has no clue when the founder might come back. The founder holds the private keys to most of the trade’s cold wallets. However, since the trade, as of now can’t process all the withdrawals via its hot wallets, it declared to suspend all of its withdrawals.


For the time being, the platform will shut all its OTC (over-the-counter) exchanging services due to the dangers related to uncertainties surrounding China’s regulatory policies. The State Council, China’s cabinet declared a national crackdown on fraud-related SIM cards and bank records in October. As per the declaration, fraudulent bank accounts and SIM cards are among the major causes that have allowed many phone and online scams.


Individuals who need to abstain from uncovering their identity when opening a SIM card or a bank account, a significant number of whom are tricksters, would purchase existing SIM cards and financial balances enlisted under others’ names. More than 15,000 individuals engaged with the wrongdoings are banished from opening another ledge in five years, as indicated by the report. 


Because of the popularity of these false records, the industry has created to make and sell these records, some of which are acquired through fraud. As indicated by a report by state news source CCTV, within almost fourteen days of the State Council’s declaration, the Chinese police have captured more than 4,600 individuals and seized around 65,000 bank cards that are connected to fake financial records.


Colin Wu, a Chinese crypto reporter, as of late stated some Chinese cryptocurrency excavators may have experienced issues in trading their mined bitcoin or Ethereum for the Chinese fiat cash to cover their electricity bills utilizing a bank card because of the crackdown.


Image Courtesy : Pixabay

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