OKEx sees massive Bitcoin (BTC) deposit after freezing withdrawals

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys playing cricket,… read more.
on Oct 17, 2020
  • Crypto exchange OKEx received a massive amount of Bitcoin despite its decision to freeze withdrawals.
  • $22.5 million in BTC arrived, in total, via two separate transactions originating at Huobi.
  • A large amount of BTC also left the exchange, only for analysts to later claim that was mislabeled.

Recently, major crypto exchange OKEx announced that all withdrawals will be frozen for the time being, meaning that all of the money that enters the exchange will be stuck there until further notice. Despite this, however, someone decided to transfer $22 million in Bitcoin from another major exchange, Huobi, directly to OKEx.

Someone deposited $22m in BTC after OKEx froze withdrawals

The situation with OKEx is confusing for a lot of users, but the exchange explained its reasons for blocking withdrawals, and all that users can do now is be patient and wait for the platform to reverse the process.

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However, soon after the freezing of withdrawals, an unknown user transferred a total of 1,995 BTC — around $22.5 million — from Huobi to OKEx. The transfer was reported by a crypto tracking service, Whale Alert, which explained that the funds arrived via two separate transactions.

One of the transactions was worth 998 BTC, while the other brought only one coin less — 997 BTC. Both transactions are roughly worth $11.3 million. The first one took place at 3.51 am EST, while the second one came about three hours later, at 6:22 am EST.

Bitcoin supposedly managed to leave OKEx, too

The transfers are certainly confusing, considering that withdrawals from OKEx are now impossible. Some have suggested that they might be a result of delayed transactions, which may have been made before the exchange froze withdrawals.

Regardless of the reason why the coins arrived at this point in time, OKEx’s BTC balance was significantly increased because of them. The exchange now holds 276,184 BTC in its wallets, according to Chain.info.

Delayed transactions also saw the removal of a significant number of BTC from OKEx — around 6,269 BTC. Nearly half of that amount was sent to Binance, and Whale Alert noted that this might be an internal exchange transfer, further saying that the matter is currently being investigated.

However, OKEx’s team stated that the address from which the coins were sent doesn’t belong to the exchange. Then, Chainalysis’ chief economist confirmed that the transactions were somehow mislabeled, and that they did not really come from OKEx.

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