OKEx Exchange Announces Suspension of Cryptocurrency Withdrawals

Vandana  |  Oct 16, 2020

OKEx, one of the major crypto exchanges, has abruptly announced the suspension of cryptocurrency withdrawals on October 16, 2020. All the services other than crypto withdrawals will function as usual without any interruption. The firm has not specified any time period till when the suspension will last. Right after the announcement, there has been a significant drop in the price of both Bitcoin and OKB.

OKEx Will Resume Withdrawals Once the Transactions are Authorized

OKEx has specified that the reason behind the suspension of cryptocurrency withdrawals is due to one of their private key holders' cooperation with the public security bureau. Due to this, the exchange is unable to get in touch with their private key holder and, hence, the authorization remains incomplete. 

The exchange has claimed that they will immediately resume their crypto withdrawals as soon as the transactions will be authorized. The firm has clarified that the suspension decision was not taken by the firm due to any security incident. It will not affect the funds of the customers. OKEx has stated that there is nothing to get worried about this temporary suspension. The services will resume as soon as possible. 

An OTC Merchant Received Money from a Fraud Group

Most people from the crypto community have reviewed the decision of OKEx. It is reported that this suspension might be due to the amount that one of the OTC merchants of exchange has received from a fraud group. The incident is under investigation by the local police. And now the person is dealing with the public security bureau. 

The ongoing investigation might be related to money laundering. The Chinese government is extremely strict when it comes to any money laundering case. Due to this sudden suspension, the price of OKB slumped by 15% and Bitcoin saw a drop of 3%. 

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