- OKEx has reported that one of the major key-holders is under an investigation which led to the suspension of withdrawals
- Though OKEx has explicitly stated, they aren’t in any way associated with the OK Group
- OKEx in their statement had said the suspension of the withdrawal is done on accounts of keeping the users safe
OKEx, one of the largest cryptocurrency exchanges is in the dock following the investigation by the Chinese police. Courtesy of the investigations, OKEx has had to halt its withdrawal from October 16. OKEx has reported that one of the major key-holders is under an investigation which led to the suspension of withdrawals. Though OKEx has stated that the withdrawals will resume as soon as the key-holder can resume authorizing the transactions.
Mingxing Xu, OKEx Founder, also known by the name Star Xu is the concerned key-holder cooperating with the investigation. As per the reports from the local news agency Caixin, Star Xu was investigated last week and had been unavailable since then. Though OKEx has explicitly stated, they aren’t in any way associated with the OK Group. Star Xu is a senior executive in the company but not being affiliated to OK Group, OKEx denied to comment on the issue.
OKEx in their statement had said the suspension of the withdrawal is done on accounts of keeping the users safe. They have also urged their users to not panic as their funds are safe and everything else is operating as usual. Although since the suspension, major crypto tokens had taken a hit. Following the news, the Bitcoin saw a fall by 3% at the time of writing. Even OKEx’s native token OKB couldn’t save itself and witnessed a 15%. Jay Hao, CEO of OKEx, has commented that their exchange will not compromise with the users’ security.
Huge Transactions Before the Withdrawals were Suspended
What’s more suspicious is hours before the announcement, Whale Alert, on-chain monitoring services reported huge transactions between OKEx and some mysterious wallet address. As per them, $13.6 million worth 1,180 BTC, $1.3 million worth 50 million Tron and $756,005 worth ETH tokens were transferred to unknown addresses. Tether (USDT) worth $13.9 million was sent to OKEx.
These suspicious transactions had started an internet opinion that the current investigation that led to the suspension of withdrawals could be related to the money laundering. Colin Wu was the first of the many to allege this theory. However, these allegations have no clear base or rigid facts to back it.
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