OKEx shuts down cryptocurrency withdrawals

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Last Updated on 16 October 2020 by CryptoTips.eu

Popular cryptocurrency exchange OKEx has suspended cryptocurrency withdrawals on its platform. According to OKEx one of the exchange’s key holders has been out of touch and currently cooperating with the public security bureau in a series of investigations.

The exchange further said that they had decided to suspend withdrawals citing terms of service, but asserted that the security of its customer assets would not be affected by the ongoing events.

OKEx’s other functions remain normal and stable and the security of your assets at OKEx will not affected, We will resume digital assets/cryptocurrencies withdrawals immediately once the concerned private key holder is able to authorize the transaction.

There have been some leading event hours before the announcement that withdrawals were suspended.

Whalealert detected that several tokens including Ether, Tron and Bitcoin have been withdrawn from known OKEx affiliate addresses. Although this development could be unrelated, but it caused quite a stir within the crypto community.

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Bitcoin suffers dip following announcement

Bitcoin suffered a dip in response to the news dropping by about 3%, within 30 minutes. The leading cryptocurrency touched $11,182 before rebounding to around $11,300 at the time of publication.

Altcoins are also not left out with the market largely in red as most investors sold off on the news. OKEx’s native token OKB dipped by about 15% in the past 24 hours.

OKEx CEO Jay Hao revealed on Twitter that non-crypto withdrawals will still be processed and that non-crypto assets were unaffected. The Malta-based exchange is the second largest crypto derivatives platform based on 24-hour volume.

This news is not a good one for the crypto exchange as this could lead to massive withdrawals from the platform when it resumes operations.

Local reports claim that the founder of OKEx, Xu Mingxing, was taken away by the police a week ago. This could be the reason for the sudden stop in withdrawals operations.