December 1, 2020

A Crypto Investor

Just another Crypto Guys Blog

OKEx Founder Reportedly Gains “Relative Freedom,” But Withdrawals Still Paused 

Recent development about popular cryptocurrency exchange, OKEx revealed that its founder, Xu Mingxing had been allowed a little bit of freedom, as the company has finally made contact with him. 

According to a report on Chinese crypto news outlet Wu Blockchain, it is not clear whether Mingxing was released on bail or the charges were dropped.   

However, despite OKEx making contact with Mingxing, the platform’s withdrawal service is still on hold as of press time. 

OKEx Suspends Withdrawal For Over a Month

Earlier last month, the exchange suspended withdrawal service on the platform due to its inability to contact one of its private key holders since security agents arrested him. 

Sources familiar with the matter disclosed at the time that Mingxing’s arrest was not related to any criminal investigation, but that he was taken on account of residential surveillance. 

However, at the time, his arrest coincided with cases of crackdowns on money-laundering activities on various cryptocurrencies over-the-counter (OTC) trading platforms within the Asia region. 

Several notable crypto executives were also investigated, including Huobi Chief Operating Officer (COO) Robin Zhu, who was probed earlier this month.  

This is not the first time that Mingxing has been arrested. In September 2018, the OKEx founder was detained by Chinese police based on a dispute he had with investors who suffered huge losses on his crypto exchange platform OKCoin.  

Withdrawal Services May Resume Soon

A clause on OKEx’s Terms of Service gives the exchange the right to “interrupt, suspend, or terminate any service” whenever necessary without any prior notice to the public. 

Since the Malta-based exchange halted withdrawal, OKEx has assured users that the service would be restored as soon as it gets hold of its private key holders so that transactions can be authorized.  

Now that the exchange has finally made contact with Mingxing, it is only a matter of time for withdrawal service to resume. 

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Original Article
Author: Lele Jima