October would go down as a spiteful month for the crypto-verse, especially for the members of BitMEX and OKEx. While BitMEX was drowning in troubled waters for the negligence of anti-money laundering and KYC procedures, OKEx, however, put a hold on its operations. After being subject to a loss, the exchange’s native cryptocurrency was seen surging by a huge margin following a rumor pertaining to the exchange.
OKEx’s Token Surges Following Rumors Around Release Of Founder Xu
Last month, prominent cryptocurrency exchange, OKEx announced that it was enforcing a temporary ban on withdrawals as a private key holder that was part of an investigation with a public security bureau was out of touch with the exchange. Soon after this news surfaced in the crypto-verse, rumors about the exchange’s founder, Mingxing Xu being taken away by the police was widely reported by the crypto media. All of this caused immense damage to the reputation of the exchange as well as its native token, OKB. The token recorded a slump of over 30% post the rumors. However, things seem to have taken a turn for the exchange.
A Chinese crypto reporter, Wu Blockchain, tweeted about the status quo of the probe pertaining to the exchange. Wu Blockchain revealed that the founder of the exchange had garnered “some freedom”. The tweet read,
Exclusive：Star Xu, the head of OKEx, one of China's largest crypto exchanges, have gained some freedom. This may bring a little bit of optimism in the investigation storm sweeping the Chinese crypto industry. pic.twitter.com/Bvf0ZPytgO
— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 18, 2020
Right after the news of the founder’s release took over Crypto-Twitter, the price of the OKB token went on an uphill journey. At the time of writing, the price of the OKB token had pushed past $5.72 with a whopping 18.46% surge over the last 24-hours.
This was followed by another set of tweets that revealed the CEO of OKEx, Jay Hao’s Weibo post. The post shed light on the course of the ban on withdrawals in the exchange. Hao pointed out that there would be 100% reserves to withdraw and the progress would be announced soon. Hao went on to tweet about the same and urged users to stay patient for the official announcement. His tweet read,
“Please stay tuned for the official announcement! We guarantee that all user funds on OKEx remain safe & unaffected, 100% of funds can be withdrawn after withdrawals are resumed on @OKEx”