Crypto News- Inner Mongolia Police Investigate Feixiaohao

Crypto News- Feixiaohao’s Compliance Issues Under Investigation: Key Team Members Allegedly Detained by Chinese Authorities

Crypto News– Recent reports from Chinese media, shared by journalist Coin Wu, reveal that Feixiaohao, a data aggregation platform for digital assets, is under investigation. The Inner Mongolia police have been probing the platform for over six months, with several key team members reportedly in custody. Efforts to contact representatives of the Shanghai-based platform have been unsuccessful, adding to the uncertainty surrounding the situation.

Feixiaohao was known for providing real-time data on various digital assets and exchanges, generating revenue through listing fees, advertising sales, and promotional partnerships. However, the platform faced significant challenges following China’s crackdown on the cryptocurrency sector. It was forced to cease operations in mainland China but continued to face scrutiny.

Previous Scrutiny: Shady Exchanges and Scam Tokens

Feixiaohao had been previously scrutinized for promoting questionable exchanges and scam tokens. Notably, in November 2021, the platform advertised the Squid Game token, which was later revealed to be a rug pull. This past controversy might have contributed to the current investigation.

China’s Ongoing Crackdown on Cryptocurrency Fraud

Since declaring cryptocurrency transactions illegal in September 2021, Chinese authorities have intensified their crackdown on the digital asset ecosystem. In 2023 alone, over 42,000 individuals have been prosecuted for fraudulent activities involving cryptocurrencies.