China’s largest cryptocurrency market data platform, Feixiaohao, is allegedly facing legal troubles as reports claim its team has been detained by law enforcement.
While the exact details remain unclear, Chinese media suggests it could be related to compliance or disputes concerning Feixiaohao’s business practices.
Feixiaohao, similar to CoinGecko, operates as a cryptocurrency market data website. The Inner Mongolia police have been investigating the platform for over six months.
Several key team members are allegedly in police custody. Attempts to contact the Shanghai-based platform have been unsuccessful according to multiple sources.
Feixiaohao provided real-time data on digital assets, generating revenue through listing fees, advertising, and promotional partnerships.
Following China’s crackdown on the cryptocurrency sector, the platform ceased operations in mainland China. However, that did not end its troubles.
Reports suggest Feixiaohao was scrutinized for promoting shady exchanges and scam tokens. In November 2021, it advertised the Squid Game token, which later turned out to be a fraud.
Currently, a new team claims to operate Feixiaohao. It is believed this group acquired access to the platform’s codebase and is continuing operations under the Feixiaohao brand.
Since declaring cryptocurrency transactions illegal in September 2021, Chinese authorities have continued to crack down. In 2023 alone, over 42,000 individuals were prosecuted for fraudulent activities involving cryptocurrencies.
