OKEx to Resume Withdrawals Before Nov. 27, Offers New Compensation Programs

OKEx will compensate those users who have been frustrated by its suspension of withdrawal service.

AccessTimeIconNov 24, 2020 at 6:52 p.m. UTC
Updated Sep 14, 2021 at 10:34 a.m. UTC

OKEx, likely trying to forestall a mass exodus of funds when its five-weeks-long freeze on withdrawals lifts this week, on Tuesday said it will offer a mix of compensation and rewards to users who've suffered because of the suspension.

Meanwhile, a spokesperson from the Malta-based crypto exchange has confirmed with CoinDesk that the date to resume its cryptocurrency withdrawal service will be sometime before the previously disclosed Nov. 27 Hong Kong Standard Time (GMT+8) date.

  • Data from CryptoQuant shows OKEx has been testing reopening its withdrawal system, as 0.02 BTC was moved out from an OKEx wallet.
  • Ki Young Ju, chief executive officer of CryptoQuant, said in a tweet the reopening of withdrawal service on OKEx could cause pricing volatility because of "bulk withdrawal" requests.
  • OKEx's latest announcement to compensate users frustrated by the withdrawal suspension seems to be the exchange's way of trying to keep those who intend to leave the exchange immediately after the service resumes.
  • Users who have made deposits, held tokens or traded during the withdrawal suspension time period will receive 20% of OKEx's total income from futures and perpetual swap transaction fees over the last seven weeks. This will come in the form of an incentive fund that will be issued as a one-time payment, according to a news release dated Nov. 24.
  • Users will receive the payment based on "their assets and transaction condition," the release states. OKEx's native token OKB will be double-weighted as an asset.
  • OKEx will also offer a commission rebate card with a minimum value of 100 tether to users with assets worth more than 10,000 tether before 4:00 p.m. UTC on Nov. 23.
  • Despite the negative news, OKEx remains the No. 1 position for bitcoin futures open interest, currently worth $1.27 billion, according to data source Skew.
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  • There has been speculation some of OKEx's users, who are largely Chinese, could shift to Binance, another exchange started in China.
  • Huobi, a third exchange started in China, recently suffered user losses on rumors alleging one of its senior executives had been arrested.

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