{"id":94290,"date":"2020-10-21T16:33:06","date_gmt":"2020-10-21T13:33:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/okexs-lips-remain-sealed-on-its-sudden-crypto-withdrawal-freeze\/"},"modified":"2020-10-21T16:33:06","modified_gmt":"2020-10-21T13:33:06","slug":"okexs-lips-remain-sealed-on-its-sudden-crypto-withdrawal-freeze","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/okexs-lips-remain-sealed-on-its-sudden-crypto-withdrawal-freeze\/","title":{"rendered":"# OKEx\u2019s lips remain sealed on its sudden crypto withdrawal freeze"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3befb7ef03f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3befb7ef03f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/okexs-lips-remain-sealed-on-its-sudden-crypto-withdrawal-freeze\/#Why_so_secretive\" >Why so secretive?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/okexs-lips-remain-sealed-on-its-sudden-crypto-withdrawal-freeze\/#Crypto_critics_have_their_say\" >Crypto critics have their say<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/okexs-lips-remain-sealed-on-its-sudden-crypto-withdrawal-freeze\/#Issues_to_resolve\" >Issues to resolve<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># OKEx\u2019s lips remain sealed on its sudden crypto withdrawal freeze <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5ldS1jZW50cmFsLTEuYW1hem9uYXdzLmNvbS9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTAvMDY1NTZiYTQtZDZkYi00ZWNjLTkwOWItZmM5NDZjZjkzMjc1LmpwZw==.jpg\" \/><\/p>\n<div data-v-5a136f3a=\"\">For nearly a week, uncertainty as to why OKEx suddenly suspended its cryptocurrency withdrawals on Oct. 16 has lingered on. The ongoing suspension has been puzzling to many, but the exchange\u2019s representatives maintain that the move was solely because one of the company\u2019s private key holders has been cooperating with a Chinese public security bureau. With one of OKEx\u2019s three keyholders now in question, the exchange\u2019s multisignature authorization process cannot be fulfilled, thus locking up its withdrawal function.<\/p>\n<p>Following reports of OKEx founder Mingxing Xu being under investigation by Chinese authorities, the price of Bitcoin subsequently dropped by around 3% within the span of less than half an hour. Not only that, but OKEx\u2019s native crypto offering \u2014 the OKB token \u2014 has also been on the slide, with the currency\u2019s value dropping by around 25% since the incident came to light.<\/p>\n<p>It is worth noting that just hours before OKEx halted its withdrawal services, on-chain transaction monitoring platform Whale Alert noted several large transfers between OKEx and certain unknown wallet addresses. In all, a transfer of <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/whale-alert.io\/transaction\/bitcoin\/62cc277a51706866da1f6a069b43e761287d7b5d1d0c48c9d52a0eeff92c6c51\">1,180<\/a> Bitcoin (BTC) was followed by another of <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/whale-alert.io\/transaction\/bitcoin\/2d74f1674bcae42ab51cb93376877fdf2c75b292e9a2695242bfa29e0735c47b\">3,500<\/a> \u2014 both worth around $53.2 million combined. Additionally, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/whale-alert.io\/transaction\/tron\/fbd332398b9990e9c43cf9f8294369e15b6cac889d38be0dc62ca792e3a98a80\">50 million Tron<\/a> (TRX) worth $1.3 million was transferred, along with <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/whale-alert.io\/transaction\/ethereum\/d57198a73d74b4361ebf9ab3d7b8c319ab8216018c4e26cb6df788446103b65b\">21,000 Ether<\/a> (ETH) worth $7.9 million and an incoming transaction of roughly <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/whale-alert.io\/transaction\/ethereum\/9e2eddc69612154b71a17521a04d4a82f9173befa702668dce780da442038386\">$13.9 million<\/a> in Tether (USDT).<\/p>\n<p>Speaking directly on the issue, OKEx CEO Jay Hao told Cointelegraph that while he fully understands that his company\u2019s current actions may impact customer sentiment negatively, the decision has been made with user security in mind:<\/p>\n<blockquote><p>\u201cWe wholeheartedly apologize for this. As a world-leading exchange, user security is not something that OKEx can or will ever compromise on. We will do everything in our power to reinstate this service promptly and will provide updates on the matter as soon as possible.\u201d<\/p><\/blockquote>\n<p>Hao went on to highlight that except for withdrawals, all of OKEx\u2019s other services such as deposits, spot trading, derivatives and staking remain unaffected. On Oct. 21, the Tron Foundation announced that it would facilitate an \u201cinternal transfer\u201d option at a 1:1 ratio for all TRX holders directly affected by the withdrawal freeze.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_so_secretive\"><\/span>Why so secretive?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Understandable it may be that a company is not obliged to share any sensitive investigative data with its customers im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely following a sudden service suspension, customers are starting to feel that a little more clarity would be welcome, considering OKEx\u2019s withdrawal ban has been in place for over four days now.<\/p>\n<p>Providing her thoughts on the matter, a spokeswoman for OKEx told Cointelegraph that due to certain unforeseeable circumstances, the company is \u201cunable to disclose the nature of its ongoing investigation.\u201d Much like Hao, she stated that despite any inconvenience caused, it\u2019s important for the company\u2019s customers to understand that the decision to suspend crypto withdrawals has been made to ensure a high standard of security. She added:<\/p>\n<blockquote><p>\u201cWe will be providing updates on the matter and restoring full service as soon as possible. There is no cause for alarm about the safety of users\u2019 crypto assets and that there has been no cessation of any other activities on our platform. While our business is as usual apart from withdrawal, our apologies if you feel we have been silent. We will be providing daily updates on Twitter.\u201d<\/p><\/blockquote>\n<p>Ben Zhou, CEO of Singapore-based crypto exchange ByBit, believes that while jumping to conclusions prematurely may not be healthy, it would be best for centralized exchanges to avoid a single point of failure going forward and build fail-safe contingencies to ensure optimum security and service availability at all times. He added: \u201cTransparency is key, especially in the crypto space where there is a whole host of uncertainty and potential risks. Trust goes both ways, and is built through transparency.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Crypto_critics_have_their_say\"><\/span>Crypto critics have their say <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Even though Bitcoin has continued to forge an impressive recovery after its 3% drop in price, it still stands to reason that the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> sentiment of the crypto market may have been affected negatively by OKEx\u2019s situation along with what h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened to crypto exchange platform BitMEX.<\/p>\n<p>Earlier this month, several federal agencies in the United States filed charges against BitMEX\u2019s top brass \u2014 Arthur Hayes, Samuel Reed and Ben Delo. As a result, 100x Group, the parent body governing BitMEX\u2019s day-to-day operations, announced that it will no longer hold executive roles at the company. Potentially contributing to the market\u2019s attitude was KuCoin on Sept. 26 announcing that it had been on the receiving end of a major hack, resulting in the firm\u2019s Bitcoin, Ether and ERC-20 hot wallets being fleeced to the tune of more than $275 million.<\/p>\n<p>Elucidating his thoughts on the subject, Thor Chan, CEO of Hong Kong-based crypto exchange Aax, told Cointelegraph that despite these recent developments, the global crypto sector seems to have staved off bearish pressure reasonably well. That being said, he did add that the noise surrounding OKEx, BitMEX and public figures such as John McAfee has certainly sent shockwaves throughout the industry. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Issues_to_resolve\"><\/span>Issues to resolve<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While crypto offers customers a whole host of advantages in terms of transparency, faster transaction speed and cheaper cross-border payments, traditional market-infrastructure businesses don\u2019t require their clients to deposit funds directly to an exchange, rather they make use of brokers. Hypothetically, even if a broker were to go bankrupt, its customers always have the option of recovering their funds directly from the broker\u2019s bank.<\/p>\n<p>Lastly, from a legal standpoint, OKEx being based out of Malta, a member-country of the European Union, but headquartered in Hong Kong raises certain jurisdiction-related issues. In fact, this very loophole has been a major cause of concern for regulators all over the globe since crypto trading became a prominent market.<\/p>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/okex-s-lips-remain-sealed-on-its-sudden-crypto-withdrawal-freeze\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# OKEx\u2019s lips remain sealed on its sudden crypto withdrawal freeze &#8221; For nearly a week, uncertainty as to why OKEx suddenly suspended its cryptocurrency withdrawals on Oct. 16 has lingered on. The ongoing suspension has been puzzling to many, but the exchange\u2019s representatives maintain that the move was solely because one of the company\u2019s&#8230;<\/p>\n","protected":false},"author":1,"featured_media":94291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/06556ba4-d6db-4ecc-909b-fc946cf93275.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75592,117,4973,70934],"class_list":["post-94290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-okex","tag-business","tag-china","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/94290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=94290"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/94290\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/94291"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=94290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=94290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=94290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}