OKEx Withdrawals Remain Suspended as Exchange Stays Tight-Lipped

OKEx announced on Nov. 6 that withdrawals are still suspended. The exchange had suspended withdrawals amid reports that founder Star Xu had been arrested. Now the exchange says “claims that a concerned party related to OKEx is under criminal detention have been refuted — we can confirm that these are rumors.” Few updates have been offered since withdrawals were suspended on Oct. 16. The exchange has now suspended withdrawals for roughly three weeks as it attempts to sort out the matter.

Multiple reports were published following the date of suspension, suggesting that Chinese authorities arrested an executive member. These reports claimed that the official had access to the private keys of a wallet, which sparked the suspension. In the announcement, the exchange denied that any OKEx member had been detained. However, it did say that the concerned party was “actively cooperating with a public security bureau.” OKEx has also obtained legal support and guidance for the matter. The exchange also said that it had always adhered to the law and complied with regulations. It also reiterates that no user funds have been affected and that all funds could be withdrawn when withdrawals resume. OKEx disclosed no further notable details about the investigation.

OKEx Resumes Trading

The OKEx case has been a dominant headline in the past few weeks. The exchange is one of the largest in the market, and the current saga has again raised concerns regarding centralized exchanges. It has resumed P2P trading in China, India, and Vietnam. OKEx’s circumstances are a sign of the increased reviewing of the cryptocurrency space. Several other exchanges and projects have also fallen afoul of regulators, most notably BitMEX. The cases against BitMEX, whose founders are facing multiple charges, shook the cryptocurrency world. BitMEX is one of the largest derivatives platforms, and the incident has spurred worry about a crackdown on exchanges. And the derivatives platform is not the only one that is being examined.

Regulators the World Over Scrutinizing Entities

Regulators have hastened their examination of the cryptocurrency market in 2020, with the US being particularly forward. The Department of Justice most recently seized $1 billion worth of BTC linked to Silk Road, but several other developments have occurred. Binance too is facing scrutiny, though no official investigation has been launched. Forbes reported that the exchange actively worked towards circumventing US regulation. The exchange denied all such claims, with CEO Changpeng Zhao stating that the report was filled with inaccuracies. The US SEC has also settled cases with Kik and Salt and ended Telegram’s crypto efforts, among other developments. However, on the positive side, it has updated rules for fundraising, possibly making it easier for crypto companies.