OKEx announces the resumption of withdrawal services on its platform

Written by: Jinia Shawdagor
November 19, 2020
  • According to OKEx, withdrawals are set to resume before or on November 27.
  • OKEx noted that it will introduce loyalty reward programs upon reopening withdrawals.
  • The exchange suspended withdrawals because of the arrest of its founder, Mingxing Xu.

Crypto trading platform OKEx has revealed that it will resume withdrawal services on or before November 27. The exchange unveiled this news via an official announcement on November 19, noting that before resuming withdrawals, its team will conduct strict security checks to allow normal operations in its hot wallet system. In so doing, the exchange believes that it will help ensure the safety of its users’ funds.

According to the announcement, OKEx will let users withdraw their entire holdings without limitations after withdrawals are open. This is because the firm has a policy on maintaining 100% reserves since its launch. OKEx went on to note that apart from reopening withdrawals, it would roll out user loyalty reward programs as an apology and as a gesture of gratitude to the community.

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This news comes after a report on October 16 unveiled that authorities had arrested OKEx founder Mingxing Xu who is also the private key holder for the exchange’s hot wallet. Per the report, the authorities apprehended and questioned him for allegedly listing the exchange using backdoor means. However, OKEx claims that Xu worked with the authorities, helping them find that the exchange did not engage in any foul play.

Reasons for suspending withdrawals

Explaining why it had to suspend withdrawals after Xu’s arrest, the exchange said,

“The reason for the suspension of withdrawals in this specific incident was because a private key holder was not able to authorize transactions. OKEx has always used a backup mechanism for private key holders to ensure that each private key holder can trigger the activation of the backup private key in the event of long-term incapacitation, such as death or memory loss.”

It went on to note that this case was different, considering the private key holder was unreachable due to unforeseen circumstances, which it had not included in its contingency plan. As such, the exchange noted that it did not have a technical solution to address the issue at hand, seeing as Xu’s incapacitation was only short. As a result, the exchange decided to suspend withdrawals temporarily until it had addressed the issue.

The exchange went on to apologize, noting,

“We apologize for any and all inconveniences, and we will strive to improve internal processes as soon as possible to prevent similar situations from happening in the future.”