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Crypto Exchange OKEx has Suspended Withdrawal Service as a Result of Police Investigation

Prominent cryptocurrency exchange OKEx has suspended the withdrawals for users. In exchange’s latest announcement, the police are engaged with one of the key holders, but this will not affect other OKEx’s operations.

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According to OKEx’s press release, a keyholder is busy in Police’s investigation. However, the exchange is “out of touch with the concerned private key holder.”OKEx is one of the three largest exchanges, including Binance and Huobi, which are serving Chinese customers.

The trading company stated it has suspended the withdrawal service for “best interests of customers and deliver exceptional longtime customer service.” The other services, such as deposits and trading facilities will remain normal.

Suspension of OTC Desk

The OTC desk of Malta-based exchange has also been suspended for a given period of time. Over recent months, Chinese authorities are taking serious actions against platforms’ OTC desks.

After the exchange suspends service, the news about Police’s crackdown over OKEx spread on Chinese social platforms, such as Weibo and WeChat. On Weibo, OKEx CEO Jay Hao said,” It’s a matter of a private key holder’s personal issue, which is why we suspended withdrawal.”

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According to some crypto experts, the Police have started an investigation in a money laundering case which also involved exchange. Recently, it reported that the trading company collected almost $74,414 from an illicit source.

Crypto Markets Lost $10.74 Billion

After OKEx’s news goes viral, the crypto markets suffered a lot as the entire market lost nearly $10.74 billion in value. Similarly, the top digital asset Bitcoin also plunged by 2.5%, but buyers assisted to recover its value. In just 2-hours, the crypto markets dropped by 3.03%.

After BitMEX, OKEx is the second-largest derivatives exchange for trading, and currently, both leading derivatives exchanges are suffering at the hands of governments’ law enforcement agencies. The Commodities Futures Trading Commission (CFTC) charged BitMEX’s owners for running an unregulated crypto exchange. Similarly, the Depart of Justice (DOJ) also charged BitMEX’s executives in the Bank Secrecy Act. BitMEX’s trading volume has dropped significantly since the incident.

According to FTX, the exchange settles a total trading volume of $6,827,053,479.

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Hassan Mehmood

Hassan is currently working as a news reporter for Tokenhell. He is a professional content writer with 2 years of experience. He has a degree in journalism.

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