The important crypto exchange OKEx has suspended the withdrawal of cryptocurrenciesand announces that someone owns your private key “Currently working with a public security agency” in connection with an ongoing “investigation”.
The exchange found that it was “not in contact” with the key holder. This prevents the “related authorization” from completing. OKEx plans to resume disbursement of digital assets “immediately” as soon as the owner “can authorize the transaction”.
Bitcoin (BTC) fell nearly 3% in response to the news, while OKEx’s native token OKB decreased by 15%.
Hours before the announcement, eOn-chain transaction monitoring service Whale Alert noticed several large transfers between OKEx and unknown wallets.
Outbound transfers of 1,180 BTC worth USD 13.6 million, 50 million Tron (TRX) worth USD 1.3 million and 21,000 ethers (ETH) were made over six hoursalong with an inbound transaction of approximately USD 13.9 million in Tether (USDT). The transfers were made over a period similar to the Bitfinex hack coin transfers according to the Whale Alert feed, however This can simply be a fluke given the large number of transactions that take place every day.
The Beijing-based reporter Colin wuwho writes to the WeChat public account @wublockchain, suggested the OKEx investigation could be related to money laundering.
“The Chinese government is cracking down on money laundering, which uses cryptocurrencies for telecommunications fraud, and the central exchange is in a very dangerous state.”
The exchange targets Asian markets despite being based in Malta. Wu also alleged that he found out that “an OTC trader in OKEx had falsely received CNY 500,000 from the scam group and was being followed by police in all provinces”.
Wu’s information is not verified at this time.
The OKEx situation occurs after a 48 hour period during which at least 33 people have been arrested Various operations to curb global money laundering activities in North America, Oceania and Europe. 3