OKEx cryptocurrency exchange suspends withdrawals “until further notice”

OKEx cryptocurrency exchange suspends withdrawals “until further notice”

The exchange asserts it was forced to suspend activity because of an ongoing investigation

OKEx has announced that it has suspended all digital assets and cryptocurrency withdrawals indefinitely until further notice. The company stated that one of its private key holders is “currently cooperating with a public security bureau in investigations where required.” It has been reported that Xu Mingxing, the founder of OKEx, was detained by police as the Chinese government has launched an investigation into OKEx.

The leading crypto exchange assured its users that all other functions remained normal and that their cryptocurrency on OKEx would not be affected by this suspension. The price of Bitcoin on OKEx immediately dropped 3% to $11,208 before recovering slightly to $11,323 following the announcement. Jay Hao, the CEO of OKEx, assured users that their funds were safe on Twitter.

Members have taken to Twitter concerning the situation, citing rumors that over 800 accounts are involved in cross border money laundering potentially linked to the current scenario, according to Alistair Milne. Users also questioned why the exchange would suspend withdrawals if only one private key holder was detained, leading some to speculate that OKEx may only have one person in charge of the private keys.

Jay Hao called out Binance CEO Changpeng Zhao on Twitter a few weeks ago, where he came out against his support of risky DeFi projects and stated that the Binance Smart Chain is highly centralized. This caused Zhao to fire back his own response on Twitter, saying, “We do not have any single point of failure in our wallet systems or personnel structure.”

Cryptocurrency investors would be wise to keep a close eye on their holdings until the investigation into this matter is fully cleared up.

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