ICO Startup GXChain (GXC) Offices Reportedly Shut Down By Chinese Police; Execs Being Interrogated

GXChain, A Chinese-based initial coin offering (ICO) initiative, have just had their offices clamped by the Hangzhou local police.

According to Bitcoin influencer and co-founder of Primitive Ventures it seems the GXChain team is having some legal issues. Using her Twitter account, Dovey was able to relay the news to the world by posting a photo of the startup’s offices which were taped closed, probably by the Chinese police, and stating that GXChain had been shut down by the Chinese police.

Dovey also wondered why GXChain had been clamped as she believes it has an authentic business. Dovey, however, quipped that the reason for the clampdown could have been triggered by the startup’s core business of trading individuals processed credit data saying that the venture is very sensitive in China. GXChain has in the past sometimes blurred the lines of privacy in a similar manner to Facebook and that could likely be the cause.

Dovey also updated her followers stating that the entire managerial team of GXChain had been picked up by Hangzhou local police for interrogations.

GXChain was started in 2017 and was rated as one of the hot ICOs of the year. The startup were successful in reaching their hardcap just a few hours after its ICO went live. The company sold approximately 24,510,000 GXC tokens and in the process raising about $144,000,000 USD after the end of ICO.

The company refers to itself as the ‘blockchain for the global data economy’ and comprises of a decentralized data marketplace that offers various forms of data to numerous enterprises in China.

Compared to many ICOs that came up in 2017, GXChain is one of the few legit projects that kept its promise. They maintained a team that kept working to ensure the project was successful even after the ICO was over. Despite being one of the authentic ICOs of 2017, the Chinese police are now after them.

Cointelegraph reports that the Chinese police are also actively investigating a non-custodial token trading platform EtherDelta in relation to a suspected exit scam.

Although it is not yet clear what the Hangzhou police are looking for in GXChain, keep it here for more details as the story unravels.

Latest update from who’s close with Hangzhou local police – all executives of GXchain are now with the police for interrogation

— Dovey Wan 🗝 🦖 (@DoveyWan) September 11, 2019

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Author: Joseph Kibe

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