In an announcement by OKEx at approximately 10:45 PM CST ( October 15th ), the crypto exchange has suspended cryptocurrency withdrawals until further notice. According to the exchange, all other functions are running properly, and all assets being held on the exchange will not be affected. New developments have surfaced around the exchanges founder, Star Xu.
OKEx Suspends Withdrawals
OKEx, the Malta-based cryptocurrency exchange announced that cryptocurrency/digital asset withdrawals will be suspended as of approximately 10:45 PM CST ( 10/15/20). The exchange stated that they will make a public announcement when withdrawals are re-enabled. According to OKEx, all other functions are working properly on the exchange, and user assets will not be affected.
Withdrawals of digital assets/cryptocurrencies @OKEx are currently suspended. Other functions are up and running. Your funds and assets are safe and not affected. Details: https://t.co/vMehdsZs1b
We sincerely apologize for any inconvenience. Further announcements will be made. pic.twitter.com/t14l7z0EUL
— OKX (@okx) October 16, 2020
Suspension of digital assets/cryptocurrencies is occurring due to one of the exchange’s private key holders “cooperating with a public security bureau in investigations.” The individual is not in touch with OKEx and therefore the appropriate authorization can not be completed.
This announcement comes only hours after large withdrawals in Bitcoin, Ethereum, and TRON were facilitated with OKEx affiliated wallets. This activity was monitored by Whale alerts.
New Developments Surfacing Around The Exchanges Founder
Overnight, a report by Caixin stated that the exchanges founder was taken in by police about a week ago. It is important to note that Star Xu ( OKEx founder ) has not been located since. The report does not go into much of detail as to why the police have taken Xu in. Even though Caixin is stating in their report that Star Xu is the reason behind the exchanges withdrawal suspensions, media outlet Mars Finance is saying other wise. Mars believes that Xu is being held by law professionals for a completely different reason, and that the withdrawal suspensions at OKEx have nothing to do with him.
Bitcoin Price Reacts
Bitcoins price started to tank leading up to and following the announcement by OKEx. As we can see from the chart below, Bitcoins price saw a quick ~ $200 drop within the first 30 minutes of suspension developments.
Price action overnight has essentially gone into a consolidation phase as the market is trying to digest the information we have. If nothing changes throughout the day, Bitcoins price could experience more downside pressure, especially going into the weekend.
The sudden drop in Bitcoin caused liquidations across large cap altcoins. Over the last 24 hours, cryptocurrencies have seen the following price action:
- Bitcoin: -0.57%
- Ethereum: -2.29%
- XRP: -2.42%
- Bitcoin Cash: -3.76%
- Binance Coin: -2.41%
- Chainlink: -0.64%
- Cardano: -3.41%
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