Feixiaohao, often referred to as the Chinese ‘CoinGecko’, is currently under investigation by local police in Inner Mongolia. This development follows the 2021 cryptocurrency ban in China, which saw stringent measures enforced across the mainland to curb crypto-related activities.
Executives Reportedly Detained
Recent reports highlight that several key executives of Feixiaohao have been detained as part of the ongoing investigation. The specifics of the allegations remain unclear, with local news channels and crypto industry insiders continuing to speculate on the potential reasons behind the probe.
China’s Aggressive Stance on Crypto Crime
This investigation into Feixiaohao is not an isolated incident but part of a broader crackdown by Chinese authorities on crypto-related activities. Just last week, China extradited Zhang Moumou, a financial criminal suspect, from Thailand.
Zhang was the head of the notorious MBI Group, which operated a $14 billion online pyramid scheme involving cryptocurrencies. This extradition, the first of its kind under the 1999 China-Thailand extradition treaty, showcases China’s growing determination to prosecute financial crimes linked to digital assets.
First Withdrawal Liquidity Case in China: College Student Yang Got ArrestedChina’s Revised AML Laws
In addition to targeting specific platforms and individuals, China has also updated its Anti-Money Laundering (AML) laws to include virtual asset transactions. These revisions, announced by the Supreme People’s Court and the Supreme People’s Procuratorate, recognize digital assets as a potential method for money laundering. Offenders now face severe penalties, including fines and lengthy prison sentences for significant violations.
Feixiaohao’s Operation Amidst Crypto Ban
Despite the severe restrictions imposed by China’s central bank in 2021, Feixiaohao has maintained its operational status and continues to post updates and articles related to the crypto market. In July 2024, the platform received approximately 200,000 visits, with a significant portion of its traffic coming from within China.
