China is proving itself to be a hard nut to crack when it comes to crypto. The country is on the verge of releasing its new digital yuan to the public, and already the nation wants to make sure it doesn’t have any competition to worry about. Thus, it is cracking down on all cryptocurrency exchanges, and it appears another one doing business in China has just shut its doors permanently.
China Has Shut Down Another Trading Firm
Token Better is a prolific cryptocurrency trading platform based in Singapore. Customers woke up today, tried to access their accounts, and cannot. They are now being told that they cannot get any of their money back. The idea is that the company is being investigated by police authorities, but according to Chinese crypto journalist Colin Wu, the company is simply being held off by China, who doesn’t want any threat to its precious digital yuan.
The private cryptocurrency sector is a massive threat to the stability and usage of the digital yuan, he states in a recent interview. He mentions:
After OK and Huobi, another exchange from China, Token Better, was investigated by the police in Sichuan, China. Earlier, it claimed to have received an investment of $50 million in US dollars, but the probability is exaggerated.
The executives in charge of Token Better have been under investigation – allegedly – since mid-October. As a result, customers cannot withdraw their funds, and at press time, the website for the company is not accessible. Lastly, its social media activity was cut off on or around October 15.
This has led some members of the crypto community to think that some sort of exit scam is going on. The company just gets $50 million in USD as a grant of sorts, and then, suddenly, it just vanishes and stops working? Something is clearly going on, and many industry analysts are taking to social media to try and bring the situation to light.
One Twitter user simply named Roy mentioned:
Singapore’s Token Better exchange goes offline after $50 million investment round, stopping withdrawals with $660 million of users’ funds on October 16, going offline today in an apparent exit scam. No explanation came from their social media channels. It’s just gone!
This Has Happened Before
This is not the first time China has gone after a cryptocurrency exchange. As mentioned earlier, the trading platform OKEx was made to suspend all withdrawal activity on October 16 – the same day as Token Better. It was later stated that the head of the organization was working with legal authorities. Star Xu, the co-founder of the exchange, is suspected of criminal activity, and is presently under “residential confinement,” which basically means house arrest.
In addition, Huobi may also be under investigation by Chinese police.