GXChain , the China-based crypto-platform, has been seized by the police for unknown reasons. The company, which has achieved a successful ICO in 2017, would have been the new target of witch hunting conducted by local authorities, says an observer.
Undertaking in the field of cryptocurrencies is increasingly difficult in the Chinese region. While the government had formally banned ICO ‘s operations following the significant losses from scams and other unregulated financial attractions, the cleaning process continues to this day.
Indeed, it was the GXChain platform, a highly publicized company, with a market capitalization of $ 600 million at the time, which was the victim of the suspicion of investigators, resulting in its recent closure.
Another high profile 2017 ICO project GXChain $GXC just got clamped down by the Chinese police
GXChain was a very hot ICO back in the days with ATH market cap over $600M (even now still holds $48M) and considered to be among the very few legit ICOs … pic.twitter.com/6uUPBx8og9
— Dovey Wan 🗝 🦖 (@DoveyWan) September 11, 2019
GXChain seized despite its legitimacy
According to the post of Dovey Wan, the founding partner of Primitive Crypto, no information was provided regarding the reasons for the seizure of GXChain materials during the operation.
At the same time, Wan claims that GXChain has passed its ICO, and that there is no valid reason (pending further investigation) that would motivate this closure.
It also announces that the only track under this crackdown could be related to illegal activities from GXChain’s data activities.
“They sell processed credit data, which is an extremely sensitive area in China,” she says, after mentioning the incomprehensible nature of the authorities’ gesture, knowing that there are countless cases of fraud on the market. which to investigate outside the GXChain case.
What do you think of this GXChain closure in China? Comment in the comments section.