OKEx Exchange to Resume Withdrawal Services As Founder Is Released From Police Custody

  • The china-based crypto exchange OKEx is set to resume withdrawals by November 27.
  • One of the ‘key private owners’ has been released by the Chinese police.

Troubled China-based crypto exchange OKEx is set to resume its withdrawal services starting Friday after a successful withdrawal test by the exchange. According to the reports, the exchange’s funds were locked beginning November 16th as one of the ‘private-key holders’ was held to help Chinese authorities in investigations.

Some outlets have reported that the mysterious private key holder is OKEx Founder, Mingxing “Star” Xu, who is rumored to be released from police custody. However, the exchange released a statement denying any connection with the founder.

Successful test withdrawals on OKEx

First reported by Crypto Quant, an on-chain analytics firm, OKEx moved about 0.02 BTC (~$380) from their wallet on Monday, signaling the exchange is getting its withdrawal service back up. According to Crypto Quant CEO Ki-Young Ju, the withdrawal opening could cause volatility across the crypto markets as OKEx users rush to withdraw their funds.

“I think #OKEx withdrawal reopening may cause volatility due to bulk withdrawal requests,” Ki tweeted.

The exchange withdrawals were halted on October 16th after one of the private key holders was under police custody assisting in an investigation. According to local media outlets, the private key holder is rumored to be the founder of OKEX, Star Xu.

The saga behind OKEx founder

OKEx users learned of the release of OKEx founder, Star Xu, bizarrely. The founder’s ‘WeChat Steps,’ an application within the WeChat messaging app that calculates steps, showed that he had started walking again. According to Xu’s WeChat statement, the Chinese police held him in custody due to a problem with the purchase of LEAP Holdings, a Hong Kong exchange-listed company, not the widely reported money laundering claims.

According to Decrypt’s reports, OKEx purchased LEAP Holdings to gain a “backdoor listing” on the Hong Kong stock exchange. However, questions arose from the millions of dollars Xu raised to buy the company – an issue that remains a mystery despite Xu’s release.

While the exchange’s private keys being “found” coincides with the OKEx founder’s release, the exchange released a statement distancing itself from Xu.

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Author: Lujan Odera

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