One of the largest crypto exchanges – OKEx will finally resume withdrawals for its clients after weeks of waiting. The platform stopped withdrawals for the first time in mid-October. This decision shocked the entire industry.
OKEx payouts will return by November 27
In line with today announcement, full withdrawal of clients’ assets will resume by November 27. OKEx will perform additional security checks to resume hot wallet operations and ensure the safety of your funds.
According to the exchange, users’ funds are 100% secured by reserves and therefore “can be withdrawn without any restrictions when the withdrawals are opened again”.
To apologize to its users for so long waiting for withdrawals to resume, the platform will create a special loyalty program. Not much is known about this yet. We’ll find out more details in the next few days.
Today’s announcement explains why the exchange initially decided to freeze payouts. One of the private key holders “ended assisting the authorities with an earlier investigation.”
As a result of participating in the investigation, this person was reportedly unable to authorize the transaction. OKEx says it has a rainy day contingency plan. Thanks to this, it is able to recover funds in the event of death or loss of memory of the owner of private keys.
“Unfortunately, we were unable to include other specific scenarios in our contingency plan, such as unavailability of private key holders due to unforeseen circumstances. In this particular case, a definitive solution to the short-term incapacity of the private key holder was therefore not a technical solution. ‘
An investigation into the OKEx founder
The stock exchange maintains that it was not involved in any illegal activities. Following the initial suspension of payouts, reports began to flood in that OKEx founder Mingxing Xu was under investigation by Chinese authorities.
Just hours before OKEx stopped withdrawals, Whale Alert reported a series of large transfers between OKEx and unknown wallet addresses. It was one transfer worth 1,180 Bitcoin (BTC) and the second, larger – 3,500 BTC. At that time, the total value of these transactions was approximately $ 53.2 million.