Investigation into a Crypto Currency Exchange from China

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After Huobi and OKEx, another cryptocurrency exchange is facing an investigation initiated by the Chinese government. The government is thought to be putting pressure on the digital currency industry as the countdown to the digital yuan launch takes place.

The Chinese government has launched an investigation into TokenBetter, a trading platform for digital assets. It is alleged that after the raid on TokenBetter’s headquarters in Sichuan state, platform officials stopped trading on the exchange.

Users could not withdraw their money

Chinese cryptocurrency journalist Colin Wu shared a post on Twitter and shared his information about the incident. Wu said that there was a police raid on the center and that the activities on the platform were stopped. Wu also stated that TokenBetter users could not withdraw their money. Wu also claimed that the platform received a $ 50 million investment prior to the developments, but that the figure may have been inflated.

According to FXStreet, it was determined that the official responsible for withdrawal transactions on the TokenBetter platform has been under investigation since October 16, and it has not been possible to withdraw money from the platform for about 1 month. Currently, the platform’s website cannot be accessed. The date of the last Tweet sent from the TokenBetter Twitter account is on October 15th.

Fraud was thought

TokenBetter pretending to be dead with consumer funds made the platform users uncomfortable. Most people have started to think that the TokenBetter platform, which stopped transactions without any official explanation, is fraudulent. In addition to being unable to access their funds, the users were also unable to communicate with the support team or customer service.

A Twitter user said in his post that the exchange was offline after the $ 50 million investment it received. Fraud suspicions rose when the stock market ceased withdrawing funds from $ 660 million of user funds.

Will the private cryptocurrency sector collapse as state-backed digital money comes out?

As the countdown for the digital yuan, which is expected to be the world’s first digital central bank currency, has begun, the government’s attitude towards private cryptocurrency platforms has drawn attention. Chinese authorities may be applying a series of stringent measures to the private cryptocurrency industry to pave the way for the digital yuan. So much so that the Chinese Central Bank even issued an offer to ban private companies and individuals from selling digital yuan.

Before TokenBetter, the Chinese government suspended the withdrawal procedures, claiming that the official who had private keys on the OKEx exchange was cooperating with law enforcement. Investigations against Huobi Chief Operating Officer Zhu Jiawei were also just one of China’s blows to cryptocurrency platforms.


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