Last month, OKEx suspended all cryptocurrency withdrawals citing that one of the exchange’s key holders has been “out of touch”, hence, all “associated authorization” for withdrawals had been prevented. The exchange added that its key-holder was “cooperating with a public security bureau” concerning ongoing “investigations,” which it said didn’t have anything to do with OKEx.
With a public announcement on November 6 the exchange claimed that all the speculations about the executive’s arrest are just rumors, despite the fact that withdrawals are still suspended and no clear information has been provided by the exchange.
“Claims that a concerned party related to OKEx is under criminal detention have been refuted — we can confirm that these are rumors,” OKEx said.
As of now, The Daily Chain has reached out to the exchange for details regarding the investigation, but there has been no response.
“Currently, the concerned party is, as stipulated by law, actively cooperating with a public security bureau in an investigation,” the statement continued, adding that “OKEx has sought legal support and guidance, and through this process, has made contact with the concerned party.”
No clarity from OKEx
The Malta-based crypto exchange has remained silent about the investigation in question until now, while the crypto community speculated that the OKEx investigation could be a part of the larger crackdown by the Chinese government regarding money laundering.
Some reports surfaced following the suspension of withdrawals, claiming that the company’s founder Star Xu had been investigated by the Chinese Police “at least a week ago” and was absent from work as well.
The recent announcement also fails to shed any light on the situation, but it assured that its users regarding its focus on legal compliance, and noted customers’ assets as currently secure. “There has been no asset outflow of any form from OKEx since the suspension of withdrawals on Oct. 16.”
“At the same time, we can assure our users that 100% of their funds can be withdrawn after withdrawals have been resumed on OKEx. Currently, our business operations are stable and running as usual.”
It’s worth noting that shortly after the withdrawals were suspended, a total of 1,995 BTC worth $22.5 million was transferred from Huobi to OKEx. The funds came in two separate BTC transactions worth 998 BTC ($11.3 million) and 997 BTC ($11.3 million) according to whale alert.
The huge transfer has sparked some wild speculations, while some crypto enthusiasts stated it was a delayed BTC transaction.
Meanwhile, OKEx resumed peer-to-peer (P2P) trading amidst the suspension, for Chinese yuan, Vietnamese dong, and Indian rupee a few days after the withdrawal suspension.