OKEx assuaged its panic-stricken customers with an announcement that it would be lifting the withdrawal freeze next week and rolling out a Loyalty Reward Program for the users to honor their patience during the down time .
The crypto exchange firm has been under the radar of Chinese federal authorities; however, it denied the rumors regarding the same
Halt on Withdrawals
OKEx created quite a furor in the customers after it froze the withdrawals of any kind in October. The company said that the withdrawals were suspended on the OKEx platform because a substantial private keyholder was assisting government authorities in the investigation. The keyholder was not validating the exchange transactions, which halted the operations as the exchange did not cover such a specific scenario in its contingency and exception handling. Since the keyholder could not validate the transactions, the exchange could not carry out any transactions on the network, due to which it halted the withdrawals.
OKEx under the regulatory radar
The OKEx founder and CEO Ming Xing Xu was allegedly taken into custody by the police in China due to several compliance issues. However, the company tried to steer clear of the rumors and denied any official being under arrest. Such negative news impacted the exchange users’ trust in the exchange, further chilling them with the stoppage on the withdrawals.
Loyalty Reward Program
The exchange announced that the users would receive a loyalty reward under a special program after the platform restarts the withdrawals slated next week.
The company announced the same as a device to apologize to its customers and a supposed damage control strategy to diminish the negative impact of the inconvenience to the users. The exchange announced that it would conduct a thorough security check to ensure that the various user accounts are uncompromised and the funds are safe in the exchange.
OKEx announced that it deployed an online and partially offline Risk Management System to ensure that the OKEx hot wallet system runs smoothly and with stability. The online Risk Management system checks the withdrawal transactions before sending them to the vault to ensure that the transactions are safe. Followed by Offline Multisignature checks, the transactions are safeguarded Fromm against any online attack.
The company would detail the terms and conditions of the Loyalty Rewards Programs in a few days. Right now, the users can withdraw their funds without any account restriction, and once the withdrawal halt is revoked, they would be able to transact freely.
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