The Chinese police on September 11th raided the police office of GXChain a well- known crypto company in Hangzhou a city in China. When asked about the recent raid on the GXChain, the Chinese company police authority did not entertain any question and said that the matter was kept under wraps. When a well-renounced news outlet Jinse asked about the raid on GXChain the police only confirmed the news outlet about the investigation was under underway, and no information will be disclosed. The police department said that all the employees of the GXChain were arrested from their office which is a Chinese based company. As the arrests were made suddenly without any prior notice from the Chinese police, the employees of GXChain were cut off from their family and were unreachable. The news of the alleged nefarious act may come as a surprise to many. The company was one of the first to hold an initial coin offering (ICO) in 2017 and was said to be a legitimate group, unlike many who had gone down this funding route.
image source: www.beltandroad.news
Since the ICO, GXChain had been successful. They reached a market cap of over $600 million USD, and although times had been less favourable in recent times, their cap had only gone down to $48 million. Yet, this figure is set to drop even further if their price is anything to go by. Following the news of the arrest, their already falling price took a steep drop of nearly 20%. The price was at a high point of $1.50 in early August, but now it sits at $0.56. Though both the parties are hesitant to divulge information on the particular investigation, many journalists are suspecting an Initial coin offering scams that have previously taken many organizations down. The most recent of the cases is the Plus Token Scam.
Source: Asia Crypto Today
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