Off late, regulators and law enforcement seem to be taking a keen interest in scrutinizing crypto platforms. While the charges against BitMEX is still fresh in the minds of the crypto community, another prominent crypto exchange seems to have fallen under the purview of the police.
Withdrawals Put On Hold
Malta’s prominent cryptocurrency exchange, OKEx wrote an elaborate blog post, earlier today, petitioning its users to steer away from the exchange for a while. In the blog post, OKEx revealed that one of the private key holders of the exchange was part of investigations with a public security bureau. Following this, the exchange announced that it would suspend the withdrawals of all the crypto assets on the exchange.
This abrupt decision was ought to be questioned by many, therefore, the exchange mentioned,
“Pursuant to 8.1 Service Change and Interruption of the Terms of Service, OKEx may change the Service and/or may also interrupt, suspend or terminate the service at any time with or without prior notice.”
The exchange affirmed that the security of the assets of the customers stored in the exchange would be intact and the other functions apart from withdrawals would operate without any hassles. OKEx left its users in uncertainty without proffering an accurate duration of the hold on withdrawals. “We will resume digital assets/cryptocurrencies withdrawals immediately once the concerned private key holder is able to authorize the transaction,” the exchange added.
Furthermore, while the exchange was trying to address this issue, the community was coming up with its own conjectures. Putting rest to all sorts of FUDs, the CEO of the exchange, Jay Hao said,
“Please be assured that the company, operation, and business are not impacted. It’s a matter of a private key holder’s personal issue, which is why we suspended withdrawal.”
Additionally, a local Chinese news portal reported that Xu Mingxing aka Star XU, the founder of OKEx was taken away by the police investigation almost a week ago. The founder was also not seen at work for a while.
Bitcoin’s price was slightly affected by the latest news, however, several other coins were seen recording more detrimental dips. OKEx’s native coin, OKB was one among the latter. During the time of writing, the coin was seen trading at $5.06 after enduring a steep fall of 15.28% over the last 24-hours.