China’s largest cryptocurrency market data platform, Feixiaohao, is allegedly facing legal troubles as reports claim its team has been detained by law enforcement.
While the exact details behind the detention remain unclear, a report from Chinese media shared by journalist Coin Wu suggests it could be related to compliance issues or disputes concerning Feixiaohao’s business practices.
According to the report, the Inner Mongolia police have been investigating the platform for over six months, and several key team members are allegedly in police custody. Attempts to contact the representatives of the Shanghai-based platform have also been unsuccessful as reported by multiple sources.
Feixiaohao operated as a data aggregation platform, providing real-time data on various digital assets and exchanges. It generated revenue primarily through listing fees paid by cryptocurrency projects to be featured on the platform, selling advertising space, and entering into promotional partnerships with exchanges and project teams.
However, following China’s crackdown on the cryptocurrency sector, the platform had to cease operations in mainland China, but that did not end its troubles.
The report states that Feixiaohao was previously scrutinized for promoting shady exchanges and scam tokens, which could have led to the investigation. For instance, in November 2021, Wu highlighted that the platform had advertised the Squid Game token, based on a popular Netflix show, which eventually turned out to be a rug pull.
Currently, a team claiming to be Feixiaohao exists, but the report alleges that this team is not the original. Instead, it is believed to be a new group that acquired access to Feixiaohao’s codebase and is attempting to continue operations using the Feixiaohao brand.
Since labeling cryptocurrency transactions as illegal in September 2021, Chinese authorities have continued to crack down on the broader digital asset ecosystem. In 2023 alone, that nation has witnessed over 42,000 individuals being prosecuted for involvement in fraudulent activities involving cryptocurrencies.
Yet China has continued to witness a rise in crypto-related crimes, as previously reported by crypto.news.
