Since the exposure of Li Xiaolai’s recording, it was reported that the Xiong’An Blockchain Fund that Li led since its formation was asked to stop advertising government funds and new investments.

It is suspected that this is the true reason for Li’s resignation from the position of managing partner. However, Li may have just announced his resignation to outsiders because he still holds 49% of the shares of Xiong’An Blockchain Fund.

Xiong’An Blockchain Fund has since released an official statement saying that they did not receive such a request from the government. They said that the Fund did not launch any ICO projects with the government’s funds and will always utilize the government funds to improve the global blockchain technology and application sources.

The Fund also said that the blockchain community in China is still relatively small and weak. It is difficult for a 10 billion RMB fund that is partially supported by the government to promote the whole industry and achieve good development. They said the whole thing is just a rumour and they hope that people will stop spreading the rumour and convey the truth to the market.