The OKEx founder reportedly got arrested while the CEO Jay Hao reassured that the users’ funds are SAFU on the exchange even after the withdrawal suspensions so let’s read more in our breaking crypto news.
The reports show that OKEX founder Xu Mingxing got arrested and the exchange immediately suspended withdrawals earlier today which led to massive confusion within the community and price slumps on the market. in the original statement, OKEx reasoned that the withdrawal suspension came because one of the private key holders is cooperating with a public security bureau in investigations where it was required. The exchange has been out of touch with the concerned private key holder.
Despite the crazy price dump for crypto assets, there was even more confusion emerging after the reports claiming that police officers took away the founder of the exchange over a week ago and he hasn’t returned yet. The company’s spokesperson commented that the exchange OKEx is a “separate entity from OK Group, and, as such, we are not in a position to comment on any actions or activities related to Xu Mingxing.”
Withdrawals of digital assets/cryptocurrencies @OKEx are currently suspended. Other functions are up and running. Your funds and assets are safe and not affected. Details: https://t.co/vMehdsZs1b
We sincerely apologize for any inconvenience. Further announcements will be made. pic.twitter.com/t14l7z0EUL
— OKEx (@OKEx) October 16, 2020
OKEx statements lacked more details on the nature of the primary issue but the company reassured that all of the funds on the platform remain safe and that the withdrawals are the only thing suspended. Other activities like trading, derivatives, deposits, and staking are operational. Okex CEO Jay Hao said:
“We understand that the suspension of withdrawals directly impacts our users’ experience on OKEx, and we wholeheartedly apologize for this. The decision to pause withdrawals was taken with user security in mind. As a world-leading exchange, user security is not something that OKEx can or will ever compromise on. We will do everything in our power to reinstate this service promptly and will provide updates on the matter as soon as possible.”
The company outlined that there’s no cause for alarm for users and they should not worry about their funds. After these developments, Binance CEO Changpeng Zhao reassured the Binance users that similar events cannot happen on his exchange:
“We have full redundancy structure that if anyone becomes unreachable, our funds are not stuck. Even from the early days, we especially made sure funds are not “dependent on CZ,” as I do travel extensively and are often in airplanes, etc.”
CZ noted that Binance hadn’t sustained any single point of failure in the wallet systems or personnel structure because the crypto exchange uses a combination of multi-sig threshold signatures.
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