Investigation Launched Against Chinese Crypto Platform ‘Feixiaohao’

Feixiaohao, established in 2017, is one of the few cryptocurrency-related platforms in China that continued its operations following the country’s ban on cryptocurrencies in 2021.

Current Investigation Details

According to reports, Feixiaohao is currently being investigated by local law enforcement in Inner Mongolia. Several executives from the platform have allegedly been detained as part of this ongoing probe, as noted by China-based cryptocurrency journalist Colin Wu on his news channel.

Wu disclosed that a local crypto news outlet on WeChat informed that many key figures from the Feixiaohao team have been apprehended for questioning by the authorities.

Reasons Behind the Investigation Unclear

As per Feixiaohao’s official profile, the platform serves as a leading crypto market data source, gaining distinction as the largest site for simplified Chinese cryptocurrency information. It is commonly equated with CoinGecko, a prominent global tool for tracking the market value of thousands of cryptocurrencies.

The specific motives for the investigation remain undisclosed, and it has been reported that the inquiry has been ongoing for over six months. Reports indicate that many of Feixiaohao’s exchange partners have been unable to make contact with the firm.

Ongoing Operations Despite Challenges

Despite the investigation, Feixiaohao has continued to release new articles in its news section, with the latest updates posted at the end of August 2024.

From online analytical data, Feixiaohao reportedly attracted around 200,000 visits in July 2024. A significant portion of this traffic originated from China, which accounted for 23% of its total visits during that month. This user engagement is noteworthy, especially given the stringent measures against cryptocurrency transactions enforced by the Chinese government.

In September 2021, the People’s Bank of China established a series of restrictive measures aimed at reducing cryptocurrency adoption within the country. Local reports suggested that this crackdown did not substantially threaten the cryptocurrency media landscape, despite certain outlets ceasing operations following the ban.

While many Chinese crypto news platforms have persisted in their operations, it remains ambiguous whether providing cryptocurrency-related services is ultimately considered illegal within mainland China.