It was reported yesterday that senior executives of some offshore cryptocurrency exchanges were detained by the Chinese police in China.
Some Chinese anti-money laundering and anti-gambling efforts were cited as the reason for the development, first reported by crypto journalist WuBlockchain.
It was claimed that one of these crypto money exchanges, whose name was not disclosed in the first place, was Huobi, and that some Tron developers were also among those detained. The owner of the allegations was Adam Cochran, a cryptocurrency developer.
First Source of Allegations Confirmed Tron and Huobi Are Under Investigation But Says The Incident Isn't Significant
However, WuBlockchain, which was the first to report the detention news in China, confirmed that some executives of Huobi and Tron are under investigation. However, he said that such incidents are happening all the time in China and the impact on Huobi and Tron will be low:
“Some executives of Huobi and Tron have indeed been investigated. But to be honest, this is common in China. It happens on almost every offshore exchange. Its founders are in Singapore. So I think the impact on the business should be very small.
The real reason behind the investigations is actually simpler than you think. This is because the local government has insufficient funding and needs to find a crypto company that is not protected by Chinese law to raise money.”
Justin Sun sent the “4” sign meaning “ignore FUD” in his only post on the subject on Twitter.
*Not investment advice.