Troubled exchange OKEx has announced it will soon allow withdrawals that had been paused after an executive holding the cryptocurrency keys was held by authorities for questioning.
- In an update on Thursday, OKEx said the private key holder "has completed assisting the authorities in a previously referenced investigation."
- "OKEx was confirmed not to have been involved in any wrongdoing or illegal activities, and the private key holder has now returned to his normal business functions," the post reads.
- It will therefore allow "unrestricted withdrawals" by Nov. 27.
- Before then, the exchange will carry out security checks to ensure normal operations of its hot wallets and safe transfers of funds.
- This may suggest OKEx is expecting a flood of withdrawals when the service resumes.
- "We will be working with immediate effect on improving our internal processes so that this type of situation is avoided in the future," OKEx CEO Jay Hao told CoinDesk.
- Users' cryptocurrency has been tied up since Oct. 15, when the unnamed keyholder was taken into police custody.
- Some reports have suggested OKEx founder Mingxing "Star" Xu is the individual concerned, although the exchange said it is "unable to comment on rumors or speculation at this time."
- OKEx said in the notice it has always maintained 100% reserves, so user funds may be withdrawn "without any restrictions."
- The company has a headquarters in Hong Kong, while being officially based in Malta.
- The exchange's OKB token has risen amid expectation of withdrawals returning, trading at $5.68 at time of writing, up 13% over 24 hours.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.