Regulators in mainland China are reportedly reviewing CyberConnect founder Wilson, as uncertainty grows around his projects and Web3 ventures.
Authorities in mainland China have reportedly opened an investigation into Wilson, founder of the blockchain projects Cyberconnect and SurfAI. Reports say officials have not revealed the reason for the probe. News of the case has drawn attention across the crypto sector because of Wilson’s role in several web3 projects.
Regulators Reportedly Reviewing Activities of CyberConnect Founder Wilson
Sources familiar with the matter say regulators began reviewing Wilson’s activities earlier this year. However, authorities have not confirmed the investigation or announced possible charges.
Wilson founded Cyberconnect, a decentralized protocol that allows users to own their social connections across Web3 applications. The system focuses on portable digital identity and social graphs that work across different decentralized platforms.
Additionally, Wilson is linked to SurfAI, a project that studies blockchain activity and trading data to provide market analysis.
In late 2023, the company raised $15 million in a Series A funding round led by Pantera Capital. Coinbase Ventures and Digital Currency Group also joined in as investors.
China’s Ongoing Crypto Ban Leaves Projects Facing Regulatory Pressure
China placed a ban on initial coin offerings and shut down domestic cryptocurrency exchanges in 2017. More so, rules became stricter again in 2021.
At that time, the government banned crypto mining and blocked financial institutions from offering services related to digital assets.
But while trading remains banned in mainland China, the government is now supporting blockchain research. And due to the persisting ban, crypto projects often face a difficult regulatory environment.
