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On October 16, OKEx had suspended all withdrawals as it lost touch with its private key holders.

OKEx seeks external legal advice

Crypto exchange OKEx had announced that both its fiat-crypto purchase capabilities and peer-to-peer outlet have started but withdrawals still remain closed. In order to counter this situation and to appease the fears of many investors, it has hired the services of an external legal counsel. Withdrawals have been suspended for a long time and the platform yet doesn’t know when it will be resuming the same. In order to buck up the withdrawal process that halted on October 16th, it now is seeking external legal help to make sure this happens soon. 

OKEx made this announcement yesterday adding that it had contacted some private key holders as well. About three weeks ago, OKEx had halted withdrawals because the holder of the user’s private keys was declared out of touch and a looming police investigation. OKEx refused to make any public announcements or statements with respect to the police investigation and the basis of it. It has rendered the matter as confidential enough to be divulged. It said that the personnel is out there to assist in investigations in a positive manner. 

“The personnel that are assisting the investigation is in good condition and is cooperating with the police department,” said the exchange.

OKEx suspends withdrawals indefinitely 

OKEx, one of the top crypto spots and derivatives exchanges had suspended all its withdrawals citing that it lost touch with its private key holders. In an official statement that was published, the exchange had asserted that it has suspended all the withdrawals since that day on October 16th. OKEx further added that the media reports claiming that the private key holder has been held for a criminal charge are absolutely baseless and false. Reiterating its previous stand, it said that user funds are safe and operations are normal. The exchange assured that every step will be taken to assume normalcy and to resume the withdrawal function. 

Many media reports also floated that the detained person is OKEx founder Star Xu but OKEx denied the allegations. 

“One of our private key holders is currently cooperating with a public security bureau in investigations where required,” the notice stated. “We have been out of touch with the concerned private key holder. As such, the associated authorization could not be completed.”

Meanwhile, this abrupt withdrawal suspension on Oct 16 has generated hue and cry in the crypto community and many took to Twitter to denounce the move. Following the suspension Bitcoin prices on the exchange also dropped drastically.

Disclaimer

The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.

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