OKEx denies rumblings of founder’s criminal detainment, withdrawals still closed

After weeks of little information, digital asset withdrawals remain closed on crypto exchange OKEx while the entity denies rumors of arrest of leader.

After closing digital asset withdrawals in mid-October, Malta-based crypto exchange OKEx still remains tight-lipped about an unspecified on-going investigation. OKEx claims detainment chatter as simply rumors, although customers are still left without withdrawal access on the exchange, even after three weeks, hearing no palatable details around the scene. 

“Claims that a concerned party related to OKEx is under criminal detention have been refuted — we can confirm that these are rumors,” OKEx said in a public update today.

Cointelegraph reached out to OKEx for additional details, but received no response as of the time of publication. This article will be updated accordingly should a response come in. 

“Currently, the concerned party is, as stipulated by law, actively cooperating with a public security bureau in an investigation,” the statement said, adding: “OKEx has sought legal support and guidance, and through this process, has made contact with the concerned party.” 

OKEx shut the door on asset withdrawals on Oct. 16. The exchange holds a number of entities responsible for managing its asset private keys. On the day of withdrawal suspension, the exchange announced one such manager’s cooperation with authorities as part of an investigation. It remains unclear whether or not the recently-mentioned “concerned party” is this private key holder from the Oct. 16 statement. 

Shortly after news of withdrawal closure in October, reports surfaced saying police questioned OKEx founder Star Xu as part of an investigation a number of days before the exchange’s withdrawal suspensions. 

OKEx’s latest update failed to give any specific details on the situation, but reaffirmed the public of its focus on legal compliance, and noted customers’ assets as currently secure. “There has been no asset outflow of any form from OKEx since the suspension of withdrawals on Oct. 16,” the statement said:

“At the same time, we can assure our users that 100% of their funds can be withdrawn after withdrawals have been resumed on OKEx. Currently, our business operations are stable and running as usual.”

Regulatory interest in the industry has increased in 2020, especially evident in the recent U.S. legal action against crypto derivatives exchange BitMEX. 

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