Office of GXChain a Chinese ICO start up have reportedly closed by a local police.
This is the tweeted photo from the founding partner of blockchain-based investment company Primitive Ventures, Dovey Wan. Saying: “got clamped down by the Chinese police.”
She also added that she believes the project to be notable and legitimate.
“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.”
Possible reason is their Business Model
Wan also added on a tweet that the field in which the startup operates which selling processed personal credit data might be the reason for the closure. Saying:
“I have no idea why the police took action against GXchain instead of 10,000 other Chinese scams, as GXchain has a real business behind. The trigger might be their data business — they sell processed personal credit data, which is a highly sensitive area now in China.”
It was reportedly that Chinese police are doing investigation on non-custodial token trading platform, EtherDelta in connection with an exit scam.