OKEx Exchange Says Crypto Withdrawals to Restart by Next Friday

"The private key holder has now returned to his normal business functions," the exchange said in a notice Thursday.

AccessTimeIconNov 19, 2020 at 2:29 p.m. UTC
Updated Sep 14, 2021 at 10:32 a.m. UTC

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  • OKEx said in the notice it has always maintained 100% reserves, so user funds may be withdrawn "without any restrictions."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.

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