OKEx freezes withdrawals amid arrest of exchange founder

CONTENT

  • The exchange still accepts cryptocurrency deposits

  • Whether the investigation is related to OKEx itself remains unknown

  • Most of the top 100 cryptocurrencies went into the red zone

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Cryptoexchange OKEx has frozen the withdrawal of all funds amid cooperation in the investigation with law enforcement agencies

Update. Caixin.com, citing intra-exchange sources, reports that OKEx founder Star Xu has been arrested by law enforcement in China.

An image is circulating on Twitter, according to which Star Xu’s personal page on the Chinese microblogging service Weibo has been blocked. When one of the OKEx tech support users asked “why Star Xu’s page is blocked,” he was told that Xu “has nothing to do” with OKEx.

On Friday, October 16, the cryptocurrency market is massively pushed into the negative zone amid news about the blocking of withdrawals from the OKEx cryptocurrency exchange. According to the official announcement of the exchange, the decision with the freeze is related to the investigation of law enforcement agencies.

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Whether the investigation is directly related to OKEx remains unknown. Nevertheless, one of the owners of OKEx private keys is involved in the case, which is why the site decided to suspend the withdrawal of funds. Despite the fact that the withdrawal of cryptocurrencies from OKEx is frozen, the site continues to accept deposits.

Market panic

The cryptocurrency market almost immediately reacted negatively to the news. At the time of this writing, most of the top 100 digital assets by market cap are in a steep dive..

OKEX suspends withdraws, founder arrested by police? Further Dump?

Source: coin360.com

Native Token As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More OKEx, OKB, among the top three outsiders, plummeting more than 14% to $ 5.13 in 24 hours.

Source: coinmarketcap.com

The cryptocurrency community has already expressed bewilderment about the safety of users’ funds due to one employee. The capital of the exchange is over $ 3.4 billion.

“Read between the lines: OKEx has only one point of failure in its key management architecture, and it is currently failing,” wrote bitcoin developer Jameson Lopp.

“Funds are safe”

OKEx CEO Jay Hao wrote on his Twitter page that all services of the marketplace except for withdrawals remain safe:

OKEx froze withdrawals amid arrest of exchange founder

“The investigation concerns only one holder of the private key”.

A similar incident previously occurred with another crypto exchange – BitMEX. The editorial staff of BeInCrypto reported that the arrest or disappearance of at least two of the three founders of the exchange could lead either to an indefinite freeze of assets, or to an irrevocable loss due to the special way of storing the assets of the trading platform..

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One Twitter user noticed that, amid freezing of funds, OKEx founder Star Xu stopped communicating..

Source: twitter.com

The assumption is related to the lack of activity in the application that reads the number of steps used by the founder of OKEx.

Source: glassnode.com

According to the analytical service Glassnode, 200 thousand bitcoins were frozen on OKEx wallets, which is approximately 1.1% of the total BTC turnover..

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Crypto News – Founder of OKEx Exchange Arrested!

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OKEx freezes withdrawals amid arrest of exchange founder
OKEx froze withdrawals amid arrest of exchange founder
OKEx froze withdrawals amid arrest of exchange founder

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