Jay Hao recently hosted an ‘Ask Me Anything’ session to address user concerns regarding OKEx’s suspension of withdrawals.
Issues with one of the exchange’s private key holders forced the cryptocurrency exchange to pause withdrawals for around five weeks in October.
In the recent AMA, Hao reiterated previous apologies for the stress and uncertainty the sudden suspension caused. He also detailed updates to the platform’s private key management system, as well as a new user rewards package.
Jay Hao: Apologetic to Users Over Withdrawal Suspension
Last week, OKEx CEO, Jay Hao, took questions from the platform’s users during an AMA on the exchange’s Telegram channel. During the session, Hao reiterated that user assets were never at risk but extended apologies for the stress and inconvenience the uncertainty had caused.
As BeInCrypto reported previously, the major exchange had halted user withdrawals on Oct. 16. User assets remained trapped on the platform until it reinstated withdrawals on Nov. 26.
OKEx explained in a previous blog post that one of the platform’s private key holders had been assisting Chinese authorities in an investigation. The exchange had apparently not considered such incidents as part of its contingency plan.
During the recent AMA, Hao noted that trading activity had understandably declined on the exchange over the five-week suspension period. Upon the resumption of withdrawals, many users immediately withdrew funds from the exchange:
#OKEx stats
— Mason Jang (@mason_jang) November 26, 2020
– OKex BTC Reserve: 101,686 => 98,821 BTC
– 2,822 BTC outflows has been occurred
– 446 BTC moved to #Binance
– 54 Accounts withdrew their $BTC
Source: https://t.co/tAPwJdhpw4 pic.twitter.com/dkWOsQh8ZZ
Despite the clear signs of reduced user confidence, Hao praised “supportive and loyal” customers that had reached out with messages of support.
He also commented on the growing maturity of the wider cryptocurrency market – apparently evidenced by BTC’s strong price performance over the period.
OKEx Rolls Out New User Rewards
To prevent potential future incidents leaving users unable to access their funds, the exchange has reportedly updated some of its internal processes. These include the way it generates and backs up private keys as well as the backup of its master private keys.
Hao further commented on reports of on-chain outflows from OKEx wallets prior to the resumption of service. He claimed that wallets identified as belonging to the exchange were mislabelled, leading to incorrect reports of funds leaving the platform.
The CEO went on to state that the investigation involving the private key holder “has no relation to OKEx.” He added that the platform remained committed to compliance with all international regulations and that it would not be able to grow without such a commitment.
Finally, Hao detailed various reward schemes aimed at thanking customers for their continued trust in OKEx. These include rebates and waivers on trading fees, with extra perks going to those users holding the exchange’s OKB token.
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