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OKEx denies rumors of founder’s arrest, payouts still suspended

November 7, 2020

After OKEx, a Malta-based crypto exchange, suspended the take-back of digital assets in mid-October, it remains very discreet about an unspecified ongoing investigation. OKEx claimed that what is being said about an arrest are mere rumors even though customers are still unable to withdraw their money from the exchange despite not hearing positive details about the prospect after three weeks.

“Claims that a party related to OKEx is under criminal arrest have been refuted. We can confirm that they are rumors,” OKEx said in a Update released today.

Cointelegraph contacted OKEx for further details but received no response at the time of this story’s writing. This article will be updated accordingly when we receive a response.

OKEx denies rumors of founder’s arrest, payouts still suspended
OKEx denies rumors of founder’s arrest, payouts still suspended

“Currently, as required by law, the interested party is actively working with a public security agency on an investigation.” The statement read and added: “OKEx has sought legal assistance and advice and through this process contacted the interested party.”

OKEx banned asset withdrawals on October 16. The exchange has several entities that are responsible for managing the private key of their assets. On the day the withdrawals were suspended, the exchange announced one of those managers was working with authorities on an investigation. It remains very clear whether the Recently mentioned “interested party” is this private key holder mentioned in the October 16th statement.

Shortly after the news of the withdrawal of withdrawals in October It was reported that police questioned OKEx founder Star Xu. withdrawals suspended as part of an investigation a few days before the exchange.

The latest OKEx update did not provide specific details about the current situation, but it did confirm to the public its approach to legal compliance Your clients’ assets are currently safe. “There have been no asset withdrawals at OKEx since the withdrawals were suspended on October 16.” The statement read:

“At the same time, we can assure our users that 100% of their money can be withdrawn after the withdrawals have resumed at OKEx. Our business is currently stable and functions as usual.”

Regulatory interest within the crypto industry has increased in 2020. This is particularly evident in the recent US legal steps against the exchange of crypto derivatives BitMEX.