Recently, Feixiaohao, China's largest cryptocurrency market data platform, was reported to be under police investigation. It is reported that several key team members of Feixiaohao have been detained by the Inner Mongolia police, and the specific reason is still unclear. This incident has aroused widespread attention from both inside and outside the industry to China's cryptocurrency regulation and market dynamics.

Feixiaohao is a cryptocurrency market data and industry news platform, known as the Chinese version of Coingecko, which mainly provides real-time cryptocurrency data and exchange information. It earns revenue through inclusion fees, advertising sales, and cooperation with exchanges and project parties.

Feixiaohao was founded in August 2017 and has since quickly become the largest simplified Chinese crypto market data website, providing extensive information on more than 14,000 cryptocurrencies. Since its launch, Feixiaohao has been an important player in the crypto ecosystem and one of the main channels for Chinese cryptocurrency enthusiasts. According to traffic data, Feixiaohao had approximately 200,000 monthly visits in July 2024, with the largest number of visits coming from China, accounting for 23% of Feixiaohao's global visits that month.

Despite its success, the platform now faces significant legal challenges. The reason for the investigation into Feixiaohao is unclear, but people familiar with the matter said the investigation may be related to the platform's suspected illegal trading services, money laundering and other criminal activities, which are long-standing problems in the cryptocurrency market.

It is worth noting that Feixiaohao has been accused of promoting bad exchanges and fraudulent tokens. For example, in November 2021, Feixiaohao vigorously promoted the "Squid Game" token, which turned out to be a scam after the token was "scammed" in the market. This behavior may cause Feixiaohao to be suspected of non-compliant operations, which in turn attracted the attention of the police.

In addition, there are reports that the founder of Feixiaohao lost money gambling in Malaysia and tried to repay the debt by selling Feixiaohao, but improper operations during the transaction may have caused relevant legal disputes, so the police intervened after reporting the case. As a result, this series of events led to the detention of Feixiaohao team members.

Despite these legal issues, Feixiaohao can still be opened normally, but only the crawler data is still updated, and the update speed of active push and other sections is very slow. It is unknown how long this situation can last. Maybe by next year, Feixiaohao will have to say goodbye to the cryptocurrency circle?

At the same time, this ongoing activity raises questions about the current management of the platform, as reports suggest that the team operating Feixiaohao may not be the original team, but a new organization that has gained access to the Feixiaohao codebase and is attempting to continue operating under the Feixiaohao brand. This situation casts doubts on the future of Feixiaohao.

At present, the Chinese police's in-depth investigation of Feixiaohao has lasted for more than six months. Strictly speaking, the matter is not as simple as just conducting an investigation, because experienced people know that if they cannot be released within 37 days, then the seriousness of the problem can be seen. In addition, multiple sources said that many of Feixiaohao's trading partners are unable to contact the company, which increases the uncertainty of its future.

The incident has attracted market attention, and many people are worried whether this means that China's regulation of cryptocurrencies will be further tightened. Since outlawing cryptocurrency trading in September 2021, Chinese authorities have been cracking down on the broader digital asset ecosystem. In 2023 alone, more than 42,000 people in China were prosecuted for participating in fraudulent activities involving cryptocurrencies. This series of regulatory measures and legal actions shows that China's regulatory policy on cryptocurrencies has entered a more stringent stage.

In summary, as supervision is strengthened, criminal activities in the industry remain serious and compliance issues are imminent. As market participants, both investors and project owners should be vigilant and follow compliance regulations to avoid legal disputes. China's cryptocurrency regulatory landscape is constantly evolving, and the future market will inevitably become more complex and changeable.

In any case, the future of the cryptocurrency industry is full of uncertainty. With the strengthening of supervision, the market will become more mature. I hope that the future crypto market can find a balance between compliance and innovation to promote the healthy development of the entire industry.