OKEx Denied Arrest Rumors Again, Withdrawals Remain Closed

The crypto exchange OKEX denied arrest rumors again, after weeks of almost no information while the withdrawals remain closed and the founder of the exchange remains in custody. In today’s crypto news, we are reading more about it.

After closing digital asset withdrawals in Mid-October, the Malta-based crypto exchange OKEX remains with their mouths shut about the unspecified on-going investigation. OKEx claimed that the detainment chatter was only rumors but the customers are still left without access for withdrawals on the exchange even after three weeks while the platform hasn’t given any details or updates on the arrest of their founder. Okex denied arrest rumors and said:

“Claims that a concerned party related to OKEx is under criminal detention have been refuted — we can confirm that these are rumors.”

Many of the news outlets contacted the exchange for additional details but received no response as of the time of writing. The statement from the exchange said:

“Currently, the concerned party is, as stipulated by law, actively cooperating with a public security bureau in an investigation.OKEx has sought legal support and guidance, and through this process, has made contact with the concerned party.”

OKEx shut the doors for the asset withdrawals and now holds a number of entities responsible for managing the asset private keys. On the day of withdrawal suspension, the exchange announced cooperation with one manager and authorities as a part of the investigation. It still remains whether or not the recently mentioned concerned party is the private key holder from the statement made in October.

Right after the news of withdrawal closure, reports surfaced saying that police questioned OKEx founder Star Xu as a part of the investigation a number of days before the exchange’s withdrawal suspensions. The latest update from the exchange failed to give any specific details on the situation but said to the public that they are focused on legal compliance and noted that the customers’ assets as currently secure:

“There has been no asset outflow of any form from OKEx since the suspension of withdrawals on Oct. 16. At the same time, we can assure our users that 100% of their funds can be withdrawn after withdrawals have been resumed on OKEx. Currently, our business operations are stable and running as usual.”

The regulatory interest in the industry increased in 2020 which is evident in the recent US legal action against crypto derivatives exchange BitMEX.