Police in China recently launched an investigation linked to the OKEx exchange. Because of the investigation, OKEx has blocked users from making Bitcoin withdrawals. According to a statement by the exchange, one of their crucial staff is working with the Chinese police. Consequently, it has led to the halting of withdrawals.
Date of Resumption
OKEx has not revealed when they plan to resume withdrawals. According to a local media report, Star Xu, the founder of OKEx is that staffer being interrogated by the police. When the news broke, the price of BTC fell by 2.9% on Friday, October 16, 2020. The native token of OKEx also fell by 14% when the news was revealed.
According to the exchange, they cannot reveal the details of an ongoing investigation. However, they said that the investigation was related to OKEx or money laundering. They added that all funds stored on OKEx were safe and all other functions on OKEx were working as usual.
OKEx Has Had a Significant Run in the Crypto Sector
OKEx has grown to become one of the most active spots and derivatives trading platforms in the crypto sector. It is ranked alongside the likes of Huobi and Binance. While they have not revealed why authorities are pursuing them, Beijing has been in recent years cracking down on crypto trading. Authorities there fear that the speculative nature of crypto could affect their monetary policy.
The concern by crypto traders and the impact on BTC prices are not without cause. Some of the biggest disasters in the crypto sector have begun with the suspension of withdrawals. One of the most significant ones was the hacking of the Mt Gox exchange. Soon after the hack, the exchange suspended withdrawals.
Xu launched OKCoin the predecessor of OKEx in 2013. He later moved away from the business and started focusing on OK Group, a blockchain venture. The exchange was moved to Malta when Beijing started cracking down on crypto trading.
According to CoinMarketCap data, OKEx experienced $3.4 billion worth of crypto spot trading in the past 24 hours. It makes it the fourth-biggest exchange. While volume data is often hard to verify, OKEx is recognized as one of the top crypto exchanges in the world.