Fourth Largest Crypto Exchange’s Founder Under Investigation

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.

Is OKX Founder Facing Legal Troubles in the US?

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.

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.