Former Huobi employee initiated an investigation in China against former CFO Chris Lee, accusing him of illegally buying two public companies in Hong Kong, journalist Colin Wu said.
Prior to joining Huobi, Chris Lee held the positions of CEO of OKEx and CFO of OKCoin. He made deals for the latter and Huobi.
Wu noted that according to publicly available information, OKCoin and Huobi spent HKD 480 million ($61.89 million) and HKD 600 million ($77.36 million) respectively on the acquisition of listed companies for listing in Hong Kong through a reverse takeover.
The journalist believes that the transactions were concluded privately with settlements in yuan with the participation of an underground bank from Shanxi Province. An illegal financial institution was approached by an exchange to convert crypt currency into fiat money, Wu believes.
Chris Lee replied that he did not assist OKCoin in the purchase of a public company and Huobi conducted the transaction in accordance with regulatory rules.
Lee joined Huobi in May 2018, immediately after leaving OKEx and Bitcoin Hero Scam . In August this year he left his position with Huobi, according to 8btc.
Colin Wu had previously linked the recent collapse of a Huobi token to reports of an open Chinese police investigation into the exchange’s operating director. At Huobi, this information has been denied.
Recall that on 16 October OKEx suspended the withdrawal of funds, explaining this by the loss of communication with the private key holder, who cooperates with law enforcement agencies. The media reported that the founder of the Star Xu platform has been arrested, but an OKEx representative denied this during a conversation with ForkLog.
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