The said crypto exchange currently faces withdrawal suspension which is one of the most unusual exchange failures in the crypto world. Prior to this, on October 16, the Chinese authorities arrested the crypto exchange’s founder Star Xu.
In addition, Xu’s arrest led to the rumors that executives arrested may access the OKEx wallets’ private keys. Therefore, the exchange played a role in the suspension of withdrawals. Furthermore, it is approximately three weeks of suspension since Xu’s arrest.
The announcement also pointed out that,
Claims that a concerned party related to OKEx is under criminal detention have been refuted — we can confirm that these are rumors.
OKEx is one of the biggest Malta-based cryptocurrency exchanges. According to Coingecko, the exchange’s daily trading volume is over $1.2 billion, at the time of writing. As per Brave New Coin insights, the present withdrawal issue is not a criminal scam or hack.
Assuming China’s involvement, the report stated that,
Although China’s attitude to crypto has been mostly negative, it has never moved to mass confiscation before.
The exchange also added that it always complied with the regulations of the exchange within the country. With this in mind, users’ funds are not affected in any way. They can withdraw their funds when withdrawals resume. Aside from that, OKEx disclosed no other notable information about the investigation.
Recently, the crypto exchange signed an MOU with BitBerry, a crypto wallet provider. Furthermore, OKEx also resumed its peer-to-peer trading in India, China, and Vietnam. Moreover, the crypto-fiat gateway will open for these countries’ currencies.