Crypto Exchange OKEx to Resume Withdrawal Service on November 27

Hours after the founder of OKEx regained his freedom from police custody, the crypto exchange has announced that it will resume its withdrawal service next week. 

According to an official announcement today, OKEx users will be able to withdrawal their funds from the platform on or before November 27, 2020. 

To compensate traders for the inconveniences caused by the service suspension, the company said it would launch a loyalty reward program, which will also commence this month.  

The recent development came after Xu Mingxing, OKEx founder successfully wrapped up investigations with the police.  

OKEx said during the investigation that the company was not indicted in any way for fraudulent activity, as opposed to rumors that circulated the internet at the time of Mingxing’s arrest. 

Why OKEx Suspended Withdrawal

Crypto exchanges usually store a significant amount of users’ funds on a multi-signature wallet that requires more than one signature holder to authorize transactions.  

Since OKEx also uses the same storage technique, the firm halted withdrawal without any prior notice on October 16, over failure to contact one of its private key holders, who was later confirmed as the exchange’s founder. 

It was later revealed that Mingxing was operating with a public security bureau in investigations, which took over a month until yesterday when it was reported that he had regained his freedom from police detention. 

Despite the report, the crypto community anticipated when the exchange would resume withdrawal service in order to put users’ minds at rest. 

However, OKEx added in today’s announcement saying ”the private key holder has now returned to his normal business functions,” and withdrawal is scheduled to commence later this month. 

Mingxing’s detention came when Chinese authorities cracked down on money laundering activities rumored to be taking place on most crypto over-the-counter (OTC) exchanges. 

The saga led to notable players in the country’s crypto space interrogated, including Huobi’s Chief Operating Officer (COO), Robin Zhu.