According to ChainNews, a local blockchain news outlet in China, ZHAO Dong, founder of RenrenBit and Dfund as well as shareholder of decentralized exchange Bitfinex, was summoned by the police on June 19, and now has been detained for 46 days.
Citing the report by another Chinese blockchain-oriented media Bishijie.com, the community rumored that ZHAO Dong might be taken away by the Yancheng police for investigation on July 2 due to over-the-counter (OTC) transactions. Regarding this, RenrenBit CMO Zicen refuted the rumors in the Moments of WeChat and claimed that all RenrenBit staff are on duty. Consequently, Blockbeats released a piece of news, stating that the OTC team invested by ZHAO Dong is cooperating with the police to investigate and collect evidence due to suspected fraudulent fund transactions. After learning of the incident, ZHAO Dong took the initiative to cooperate with the investigation, according to the person who is close to the matter.
Citing the latest news, the people who is familiar with the matter disclosed that ZHAO Dong's detention was not caused by OTC transactions, but was suspected of assisting in the flight of capitals. The business operated by ZHAO Dong's OTC-focused team is featured with the conversion into overseas assets, such as U.S. dollars, euros and even real estate. At present, three staff members of ZHAO Dong's team have been released, which means that the police's investigation is basically over. However, ZHAO Dong and another two managerial staff have not yet been freed, and they may face great fines in the future.
In addition, the person familiar with the matter also exposed that the police acquired a video of ZHAO Dong's team members drinking with criminals suspected of evasion of exchange control, which led to the investigation. At the moment, ZHAO Dong's relatives and RenrenBit team are actively working to strive for ZHAO Dong's release.