On Sep. 11, citing Chinese local news, the main operating company of GXChain, Hangzhou Cunxin Data Technology, suspected to be sealed off by the Public Security Bureau of Hangzhou. According to sources, the incident was related to the company's illegal theft and sale of citizen information, and was not directly related to the relevant blockchain business.
However, in the community, there is an official group of GXChain stating that the report is a fake news and the exposed photos are all composite photos. But then a live video, which showed the company was sealed off, was spread around the media. In addition, the business information shows that, the share of LI Xiaolai, who allegedly the richest Chinese investor in Bitcoin, accounted for 7.5% of the company's funding. Just now, LI Xiaolai said on Weibo, China's social media platform, "it is really not easy to make angel investment." It is suspected that he has responded the incident indirectly.
According to CoinNess.com, GXC fell rapidly for a short time, dropping to $0.6180. GXC is now reported $0.6273, decreasing by 17.63%. CoinNess.com is verifying the authenticity of the incident to relevant parties.