OKEx Reopens Withdrawal; Traders Massively Pulling Out Their Funds

News / 26.11.2020

Popular cryptocurrency exchange OKEx has resumed withdrawal activities after more than five weeks of suspending the service. 

On October 16, OKEx suddenly halted withdrawals saying that it had lost communication with one of its private key holders. The exchange said it had to suspend the service because it needed authorization from the key manager. 

Reports at the time revealed that the private key holder was the exchange’s founder Mingxing “Star” Xu, arrested by the Chinese police. Sources familiar with the matter said he was taken in to aid authorities with a money-laundering investigation. However, OKEx denied the reports. 

OKEx Reopens Withdrawal

Users lamented at OKEx’s decision to abruptly as they were forced to leave their funds on the exchange, but there was nothing they could do. 

On November 18, one month after Star Xu’s arrest, the CEO was released. The exchange announced that it would resume withdrawal service at 8:00 am UTC on November 26. 

In the announcement, OKEx also revealed that it launched a “compensation and loyalty rewards” program to compensate users for their support during the five-weeks long suspension and the inconveniences caused.

Massive Withdrawals

While the rewards program was juicy, it was not enough to deter users from pulling out their funds from OKEx to private wallets and other exchanges like Binance

Fresh data from the blockchain analytic tool, Cryptoquant revealed that OKEx recorded its largest Bitcoin outflow in six months. 

According to Cryptoquant, OKEx BTC Reserve saw a significant drop from 101,686 BTC to 98,821 BTC, indicating that over 2,800 bitcoins were immediately withdrawn from the exchange.

Mandy Williams joined the crypto space in 2016, and since then she has been learning and writing about cryptocurrencies and blockchain technology.