OKEx exchange releases suspended withdrawal update

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OKEx, the Singapore-based digital currency exchange that halted digital asset withdrawals on October 16th, has hired external counsel to help them navigate the issues the exchange currently faces.

According to OKEx’s official announcement,

The claim that the person has been criminally detained is a rumor and is currently actively cooperating with the public security organs to carry out investigations in accordance with the law. OKEx has hired external legal counsel to provide legal support and guidance, and has now contacted some private key holders. The investigators are currently in good condition and cooperate well with the public security organs.

OKEx’s troubles

On October 16th, OKEx unexpectedly announced that they were suspending withdrawals because one of its private key holders was involved in a police investigation. Later that day, rumors began to circulate that the private key holder that was involved in the police investigation was OKEx’s founder, Xu ‘Star’ Mingxing. 

Reports said that Star Xu was under investigation in regard to personal matters that were unrelated to the OKEx exchange. Although OKEx never confirmed who the private key holder was, OKEx CEO Jay Hao said, “The investigation concerns a certain private key holder’s personal issue only. Further announcements will be made.” This seems to support the earlier rumors regarding Star Xu being under investigation for personal matters.

However, it is doubtful that OKEx will release any information that truly gives the audience insight into the issues the exchange and its private keyholder are facing. In their official announcement, OKEx said, 

“Since the content of the relevant investigations is confidential, due to the principle of confidentiality, OKEx cannot disclose more information and interview content.”

It has almost been one month since OKEx suspended withdrawals, which can understandably be frustrating for traders; especially since OKEx has not provided any coherent reasons regarding why one private key holder’s personal life results in the exchange suspending all withdrawals.