OKEx denies rumours of its founder’s arrest, withdrawals remain suspended

After weeks of poor reporting, digital asset withdrawals continue to outstrip the OKEx crypto exchange, as the company denies rumours of its founder’s arrest.

After suspending digital asset withdrawals in mid-October, OKEx, a Malta-based cryptomoney exchange, remains very discreet about an unspecified ongoing investigation. OKEx stated that what is being said about an arrest is simply rumour, although clients are still unable to withdraw their funds from the exchange, even after three weeks, they have not heard any positive details about the scenario.

„Claims that a party related to OKEx is under criminal arrest have been refuted, we can confirm that these are rumours,“ OKEx said in an update released today.

Cointelegraph contacted OKEx for further details, but received no response by the time this story was published. This article will be updated accordingly if we receive a response.

„Currently, the interested party is, as required by law, actively cooperating with a public safety office in an investigation,“ the statement said, adding: „OKEx has sought legal support and guidance, and through this process, has contacted the interested party.

OKEx banned asset withdrawals on October 16. The exchange has several entities responsible for managing the private key of its assets. On the day the withdrawals were suspended, the exchange announced the cooperation of one of these managers with the authorities as part of an investigation. It remains unclear whether the recently mentioned „interested party“ is this private key holder mentioned in the October 16 statement.

Shortly after the news of the suspension of the withdrawals in October, reports surfaced that the police had questioned OKEx’s founder, Star Xu, as part of an investigation a few days before the exchange suspended the withdrawals.

OKEx’s latest update did not provide any specific details on the current situation, but reassured the public of its approach to legal compliance, and pointed out that its customers‘ assets are now safe. „There have been no asset withdrawals from OKEx in any form since the suspension of withdrawals on October 16,“ the statement said:

„At the same time, we can assure our users that 100% of their funds can be withdrawn after OKEx withdrawals have resumed. Currently, our trading operations are stable and running as usual“.

Regulatory interest within the crypto industry has increased in 2020, this is especially evident with the recent US legal action against the BitMEX crypto currency derivatives exchange.