Posted 6 months ago | by @devadmin

According to a Twitter post popular cryptocurrency exchange OKEx based in Malta, has issued an “Announcement on Suspension of Withdrawals.” A report in Chinese states the CEO, Xu Mingxing hsa been arrested and is cooperating with authorities.

OKEfx stated on Twitter, “Withdrawals of digital assets/cryptocurrencies @OKEx are currently suspended. Other functions are up and running. Your funds and assets are safe and not affected.”  In a press release, OKEx writes the following:

“Dear valued customers,

One of our private key holders is currently cooperating with a public security bureau in investigations where required.   We have been out of touch with the concerned private key holder.  As such, the associated authorization could not be completed.  Pursuant to 8.1 Service Change and Interruption of the Terms of Service, OKEx may change the Service and/or may also interrupt, suspend or terminate the service at any time with or without prior notice. In order to act in the best interests of customers and deliver exceptional longtime customer service, we have decided to suspend digital assets/cryptocurrencies withdrawals as of [October 16, 2020 at 11:00 (Hong Kong Time)].  We assure that OKEx’s other functions remain normal and stable and the security of your assets at OKEx will not affected.

We sincerely apologize for any inconvenience caused by the suspension of digital assets/cryptocurrencies withdrawals.  We will make public announcement in a timely manner on any important development of the matter.  We will resume digital assets/cryptocurrencies withdrawals immediately once the concerned private key holder is able to authorize the transaction.  We appreciate and value your continued support and trust and will continue to deliver first-class products, services and technical support to our customers.

Yours respectfully,

OKEx”

The exchange also noted in its tweet and in its message that “other functions of OKEx are guaranteed to be normal” and “asset security is not affected.”

Two other sources close to OKEx told Caixin a Chinese news agency that it was Xu Mingxing , the founder of OKEx, who is currently “cooperating with public security investigations.”  One of the people also said that Xu Mingxing had been taken away by the police at least a week ago and had not appeared in the workgroup for many days.

According to a Google translation of the article, “Actually, the announcement is very clear. What is a private key manager? Could it be that old Xu did not have it in his hands? Private key?”

The article is behind a subscription paywall and written in Chinese so very little information is available at this time.

The western world hasn’t woken up yet to this news and Bitboy Crypto seems to be the second news outlet to cover this story, at the time of this report. Bitcoin’s price hasn’t felt the news yet but OKEx is considered to be the largest derivatives exchange by volume.

This is the second Bitcoin derivatives exchange under the scope of authorities in under a month time frame. A few weeks ago Bitmex was indicted in the U.S. as Bitboy Crypto previously reported.

Bitcoin is currently trading at [FIAT: $11,200] DOWN -0.2% according to Coingecko at the time of this report.

This is a breaking news story and more details will be added as they become available, stay tuned to Bitboy Crypto.