Yescoin Founder Zhang Chi Taken into Custody by Shanghai Authorities During Business Conflict

Key Takeaways:

• The conflict, which began as a business issue, has developed into a legal matter, raising concerns within the community.
• The Yescoin team reassured that the project continues to operate despite Zhang’s situation.
• Investors have voiced skepticism regarding the project’s credibility, with some labeling it a scam due to prolonged delays and the absence of a token generation event (TGE).
• Concerns have also surfaced regarding the project’s connections to Mainland China, where cryptocurrency regulations are stringent.
• A separate announcement in Chinese indicated that Zhang is still a student at Zhejiang University, a detail not included in the English version.

Yescoin founder Zhang Chi, also known as Zoroo, has been apprehended by Shanghai authorities following a business dispute with his partners, according to a statement from Yescoin on March 7.

pic.twitter.com/gRbVHUmxEz

— Yescoin (@Yescoin_Fam) March 7, 2025

The statement attributes the situation to a disagreement between Zhang and his business partner, Wang. The issue, initially a business concern, has now escalated into a legal case.

Yescoin Community Responds to Founder’s Detention

“We regret to inform you that Zoroo (@Zorooeth), the founder of Yescoin, has been taken from Hangzhou by Shanghai police due to a dispute with his business partner, OldWang,” the post stated.

Despite Zhang’s detention, the team assured that Yescoin’s operations remain unaffected. “We genuinely appreciate your concern for Zoroo (@Zorooeth) during this time,” the statement concluded.

Following the announcement, community responses have been predominantly negative. Some users questioned the project’s integrity and speculated about the nature of the dispute, with some labeling Yescoin a scam and expressing doubts about its long-term sustainability.

Many shared their views after calling it a scam, noting that the project has spent months promoting and farming without an official launch, with some speculating that this is being done to avoid the token generation event (TGE).

“As Q1 is nearly over, they are starting to make excuses; no TGE is coming here,” one user commented.

Several investors also expressed panic and disbelief upon learning that the project’s core team is based in Mainland China, where cryptocurrency is heavily regulated despite its focus on international markets.

The Yescoin team also issued a statement in Chinese, which contains additional information not found in the English version, indicating that Zhang is still a student at Zhejiang University.

Legal Risks and Investor Confidence in Web3

This incident raises broader concerns about transparency and governance in cryptocurrency projects, particularly those operating in jurisdictions with strict regulations. Investors often rely on trust in project teams, but unexpected legal issues can undermine confidence and lead to increased scrutiny of how projects are structured and managed.

While many cryptocurrency initiatives advocate for decentralized governance, the reality is that most still depend on central figures for decision-making and operations. When these individuals encounter legal troubles or disputes, projects can be thrown into uncertainty.

Frequently Asked Questions (FAQs):

What’s a Token Generation Event (TGE)?

A Token Generation Event (TGE) refers to the official issuance of a project’s cryptocurrency tokens, making them available for trading or use within the ecosystem. Unlike Initial Coin Offerings (ICOs), which focus on fundraising, a TGE marks the moment when tokens are distributed to investors, early adopters, or liquidity pools. Delays in TGEs can lead to speculation about a project’s legitimacy or financial health.

Why are investors concerned about Yescoin’s ties to Mainland China?

Cryptocurrency is heavily regulated in China, with authorities banning exchanges and ICOs while discouraging cryptocurrency transactions. Although Yescoin targets international users, its core team operating from China raises concerns about potential legal risks, government intervention, or operational restrictions that could impact the project’s future.

What are the risks of investing in projects without a public roadmap or official token launch?

Projects that delay their TGE or provide unclear roadmaps can be risky for investors, as there may be less transparency regarding when and how tokens will be distributed. Some investors worry that such delays may indicate financial instability, lack of development progress, or intentional avoidance of regulatory scrutiny.

What are the broader implications for crypto projects when founders face legal issues?

Legal disputes involving key figures in a project can create uncertainty, affecting investor trust, market sentiment, and future funding opportunities. In decentralized finance (DeFi) and web3 projects, robust governance structures and clear leadership can help mitigate risks associated with centralized decision-making and legal entanglements.

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