A founder of crypto exchange platform got arrested by Hong Kong’s local police. The platform is unaware when its founder will be released by authorities.

A new report suggested that on Saturday, one of the founders of a crypto exchange platform had been taken into custody by local police. It was informed that the crypto exchange platform was established in Hong Kong a few years back. The exchange informed on Saturday that one of its key officials had been arrested by police. It also said in a public message that it is not aware when the official will be released by the authorities.

The details of the news suggested that there was an investigation going on relating to financial fraud by Hong Kong authorities. A nationwide crackdown in China had been going on against fake mobile SIM cards and fake accounts maintained with fraudsters with banks. In the midst of this investigation, many fraudsters were earlier apprehended by local law enforcement agencies.

The global crypto platform informed that some funds were transferred in the account of its founder. It was further informed that the sources of funds transfer were unknown to the founder. It was revealed by the authorities that the funds were transferred by international scammers. The authorities, on the pretext that the founder was the beneficiary, arrested him and took him in custody, apprised the exchange.

It has been over 15 days that the founder had been under judicial custody for investigation as informed by the exchange.

Meanwhile, as an immediate measure, the exchange had suspended withdrawal and deposit operations. It was stated in the message posted on its website that the arrested official had been the custodian of key information. Similarly, the exchange had decided to terminate its trading operations till further instructions. It had further highlighted that the policies promulgated by Regulators are against the interests of decentralized exchanges.

On the other hand, the Chinese government had launched a full-scale operation against fake bank account and fraudulent SIM cards. It told that both are the two major causes of giving rise to cybercrimes and other illegal activities. The government warned that those who seek to obtain bank accounts/SIM cards without revealing their identities would be dealt with strictly.