Cryptocurrency exchange OKEx announced the involvement of third-party legal consultants to solve the problem with the withdrawal of digital assets.
Recall that on October 16, the exchange suspended the withdrawal of crypto assets due to the” unavailability ” of one of the holders of private keys. OKEx CEO Jay Hao explained that the absence of the key holder is related to the investigation that is being conducted by Chinese law enforcement agencies against this person, but it has nothing to do with the exchange.
Then, on November 6, OKEx management said that it had contacted other private key holders, but could not disclose details due to the confidentiality of the investigation. The report also said that the employees of the trading platform are assisting the investigation and cooperating with the police department.
Some media outlets reported that the detainee was the founder of OKEx, Star Xu, but a representative of the exchange denied this information. OKEx executives called the information about the criminal charges against the detained private key holder “rumors”. The exchange also denies rumors that it stores clients ‘ assets in a cold wallet with a single signature.
In addition, the management of OKEx assured users that their funds are safe, and the platform is working as usual. Representatives of the exchange explained that they are making all necessary efforts to restore the withdrawal of funds in the near future.
Recall that in September, Chinese investigative authorities began investigating the activities of an over-the-counter cryptocurrency trader who helped fraudsters exchange $73,500 for USDT. It is assumed that the funds were first deposited on OKEx.