OKex suspended withdrawal continues after two weeks after halting its withdrawals on Oct 16. Let’s take a look at the events that led to the newest controversy involving another major exchange in the crypto industry.

On October 16, 2010, OKex temporarily suspended all its crypto withdrawals. This is allegedly after an unnamed private key holder was taken into custody by authorities. But reports were circulating that a huge amount of Bitcoin was also withdrawn from the exchange before the announcement was made. The report was immediately dismissed by OKex CEO in a post on their official Twitter account. He also gave assurance to its customers that their assets remain safe. 

tweet by OKex CEO

They clarified through their official website that the origin wallet addresses in those transactions were not from OKex. The statement was also confirmed in a tweet by the chief economist of Chainalysis branding it as “mislabelled”.

All operations for all digital assets were normal except for withdrawals. Again, they reassured their customers that their funds are safe and that they are working hard to resume withdrawals. 

On the most recent update on their Twitter account, withdrawal remains suspended. 

recent update by OKex on their withdrawal

OKex Users Flood Twitter with Sentiments

OKex customers have expressed their dissatisfaction over the past few days with the exchange’s lack of transparency. There is also a growing clamor for them to disclose the real situation behind the crisis. Some of its customers have taken to Twitter their growing frustration and sentiments over the issue. 

OKex made several updates through their Twitter account and on their official website. But their customers are now growing impatient as to when they will resume withdrawals. Their silence is not helping but further adds up to the injury. 

Growing Controversy Behind OKex

OKex is one of the biggest crypto exchanges which has $200,000 worth of Bitcoin in its vaults according to Glassnode. With such a huge amount of money, the issue of its private key holder is creating such controversy. Why? As stated on its official website, there were supposedly two OKex company personnel in possession of its private key. One is located in its Beijing office while the other is located one in a city on the West Coast of the United States. 

Okex security policy

According to a report by Jinse Caijing, a Chinese blockchain news site, OKex Bitcoin cold wallet is not multi-signature but single-signature with founder Xu Mingxing holding the private key. As further stated by the news site, Xu is sharing one private key among its staff rather than using a multi-signature wallet or other solution. But this was denied by OKex pointing to its security policy. There was also an issue that the report was only photoshopped raising concern about its veracity.

OKex users are wondering whether they will find themselves in the same boat as Cryptopia’s customers.  Cryptopia is a crypto exchange based in New Zealand with a total of $100 million in digital assets. It closed down on May 15, 2019, after losing $16 million worth of crypto assets from a major hack in January 2019. With the continued silence of OKex, their customers are growing wary over the safety of their funds. Will OKex become the next Cryptopia? We would always want to be positive about things but whether it’s going to be that way, it will depend on how OKex will deal with the foregoing circumstance. Are we going to see an update that will put an end to OKex suspended withdrawal? Or will this continue to drag on? Let’s all wait and see what will be the turn of events regarding this controversy.