In today’s edition of Crypto Daily News, we’ll cover the details of OKEx’s founder being arrested by Shanghai police and the story on the man losing his life savings after Bitcoin (BTC) crashed.
Crypto Daily News: September 11th, 2018
OKEx Founder Arrested
The top crypto news today revolves around the latest reports of OKEx’s founder, Star Xu, being arrested for fraud by Shanghai police.
Sina News: Star Xu, founder of OKCoin/OKEX, is being investigated by Shanghai police. According to Lu Jun, officer at the local PD, Xu was suspected of fraud accused by investors. SH police has accepted the case.
OKEx is the second-largest cryptocurrency by its total trade volume within the last 24 hours. Xu was allegedly involved in a fraudulent scheme regarding the digital token WFEE. While this has nothing to do with OKEx, the founder is a shareholder in a potentially fraudulent company.
The news reports confirm that the founder is cooperating with police and if there is no sufficient evidence found, he will be released by authorities after a 24-hour period. According to Nulltx, the company issued the native token WFEE and authorities have been receiving complaints that this venture and coin may be potentially fraudulent.
As a shareholder, Xu can be deemed responsible for any fraudulent efforts made by the company. However, OKEx is not responsible for issuing the currency, as that was handled elsewhere.
Bitcoin (BTC) Drops and Man Losses Life Savings
Since January, around $500 billion has been wiped off of the cryptocurrency market. A property developer in the UK told CNN that his life savings was among the money lost in the fall of the crypto market. Sean Russell invested $120,000 into Bitcoin back in November of 2017.
Russell had little investing experience and was stunned when his investment turned to $500,000 in the month of December.
“I think there was one morning where I woke up, where I made about £12,000 ($15,600) in one morning on my investment and it just kept going,” Russell told CNN. “I was thinking, wow, that’s mortgages paid, that’s holidays that I’ve always dreamed of.”
Bitcoin peaked at nearly $20,000 a coin back in mid-December 2017. Since that time, Russell’s investment losses have reached around 96%. The property manager tried to mitigate his risk by shifting money into altcoins, but that didn’t work as all coins fell simultaneously with Bitcoin.
“It was devastating, quite traumatic, really,” Russell said. “I’ve seen stories on the news of billionaires going bankrupt, and you think how can that be? How on earth did you lose that amount of money? And yet, here I am in that position.”
The thing we all can learn from this story is that it is a bad idea to put your life savings into a high-risk investment. Seriously, don’t be like Sean. Seek financial counseling if you are uneducated and want to invest in things such as stocks, bonds, crypto, or anything remotely risky.