Reports circulating in Chinese media allege that Zhao Dong, head of the over-the-counter (OTC) crypto lending platform RenrenBit, has been detained by local police.

The validity of these reports is not known at this time. Some say Dong is currently in a police station in Hangzhou, others claim he is in Yancheng.

Matthew Graham, chief of Sino Global Capital, said through Twitter that reports about Zhao’s current situation seem “confirmed.”

RenrenBit allegedly operating “as usual”

Graham clarifies that being detained is not the same as being arrested. He notes that the alleged detention may not have anything to do with RenrenBit’s operations.

Quoting RenrenBit employees, Chainnews reported on July 2 that “all of the company’s staff have turned up for work as usual.”

In addition to his role at RenrenBit, Zhao is known for being an investor behind the crypto exchange, Bitfinex.

Is Zhao involved in illegal crypto trading transactions?

Chainnews alleges that the head of RenrenBit has been cooperating with the Chinese authorities related to suspicions of alleged fraud transactions performed by the company.

Zhao stated in 2019 that he believed that the crypto spring will only come in 2020. When asked about the future of Bitcoin (BTC), Zhao Dong recalled the peak of the coin’s popularity in December 2017.

In comparison to that time, no one cares about BTC today, he noted, adding that the coin will only draw attention when it reaches “many tens of thousands of dollars” once again.