Tokyo Local Prosecutor's Office investigates Bitgate parent company to fill customer losses

According to the Nikkei News, the Tokyo Local Prosecutor’s Office has inquired about the company’s management and other company officials involved in the incident, in response to the Japanese Dongxiang Securities (Bitgate parent company) filling the loss of customers in the foreign exchange margin transaction. . The special search department will conduct an investigation on the alleged violation of the Financial Instruments Trading Law (filling losses). Stakeholders said that at least 10 customers’ losses were filled and the amount could be in billions. According to previous news, in February this year, the Japan Securities and Exchange Commission had conducted a mandatory investigation on Dongxiang Securities on this matter. Although the survey is not directly related to Bitgate, factors such as the decline in the company's image may also affect Bitgate's cryptocurrency business.