Bitcoin juggernaut OKEx suspends cryptocurrency withdrawals … indefinitely!

Scalded Cat Fears Cold Water – Bitcoin Hero is a Malta-based company primarily engaged in providing cryptocurrency-related services. The platform, founded in 2018, has established itself as one of the most developed worldwide. It is the second-largest crypto platform by 24-hour volume, according to Skew.

Disturbing explanations

Twist: Friday, October 16, OKEx announced that the cash withdrawal was suspended indefinitely. For good reason, one of the „key holders“ was disconnected from the network . The latter is in fact in cooperation with the „public security bureau“ in the context of an investigation . The CEO of OKEx, Jay Hao, has also indicated that this investigation with justice was due to “personal problems” that the key-holder was going through . According to Hao, this matter should not affect OKEx . Colin Wu, journalist on site, suggests that the investigation could be part of a larger framework. The latter indeed suspects a repressionof the Chinese government in matters of money laundering .

“The Chinese government is cracking down on money laundering involving cryptos […] exchange platforms represent a real danger for states. “ – Colin Wu

An immediate reaction

As is often the case, the case began with significant movements of cryptocurrencies . Twitter account @whale_alert reported, on October 14 at 8:38 a.m., an $ 11 million (1,000 BTC) transaction . Subsequently, 50 million TRX and 21,000 ETH were also transferred, worth $ 8 million . These transactions came from OKEx, and they were destined for unknown wallets . A few hours later, OKEx sat down to dinner detailing the news, which prompted an immediate reaction from the markets . Indeed, the OKB / USD pair fell 3% in 30 minutes , then 17% over the last 24 hours.. More generally, the cryptocurrency market also rocked on Friday.

The platform also tried to reassure its investors through a press release, posted on Weibo :

“Other OKEx functions remain normal and stable, and the security of your assets at OKEx will not be affected. We will resume crypto withdrawals immediately as soon as the holder of the relevant private key is able to authorize the transaction. “ – Jay Hao

Since then, some movements of funds have yet been identified by the community , especially to the exchange Binance . According to the local Chinese press , on this Monday morning, Xu Mingxing, the founder of OKEx is currently being detained by the police.