{"id":30176,"date":"2020-10-16T08:53:56","date_gmt":"2020-10-16T05:53:56","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=30176"},"modified":"2025-08-27T20:56:46","modified_gmt":"2025-08-27T17:56:46","slug":"okex-suspends-withdrawals-media-report-founder-detained","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/okex-suspends-withdrawals-media-report-founder-detained\/","title":{"rendered":"OKEx suspends withdrawals; media report founder detained"},"content":{"rendered":"<p>The cryptocurrency exchange OKEx has suspended withdrawals. One of the private-key holders is not responding, and at the time of writing he is cooperating with law enforcement authorities.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Withdrawals of digital assets\/cryptocurrencies <a href=\"https:\/\/twitter.com\/OKEx?ref_src=twsrc%5Etfw\">@OKEx<\/a> are currently suspended. Other functions are up and running. Your funds and assets are safe and not affected. Details: <a href=\"https:\/\/t.co\/vMehdsZs1b\">https:\/\/t.co\/vMehdsZs1b<\/a><\/p>\n<p>We sincerely apologise for any inconvenience. Further announcements will be made. <a href=\"https:\/\/t.co\/t14l7z0EUL\">pic.twitter.com\/t14l7z0EUL<\/a><\/p>\n<p>\u2014 OKEx (@OKEx) <a href=\"https:\/\/twitter.com\/OKEx\/status\/1316967394909294593?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The rest of the platform&#8217;s functions remain online, and users&#8217; digital assets are safe, according to OKEx representatives.<\/p>\n<p>OKEx CEO Jay Hao stressed that the investigation concerns the private matters of the key-holder and is not connected with the exchange. Dovey Wan of Primitive Ventures <a href=\"https:\/\/twitter.com\/DoveyWan\/status\/1316981502119309312?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">clarified<\/a> that this relates to Chinese authorities.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">All operations <a href=\"https:\/\/twitter.com\/OKEx?ref_src=twsrc%5Etfw\">@OKEx<\/a> except digital asset\/cryptocurrency withdrawals remain unaffected.<\/p>\n<p>All your funds and assets are safe.<\/p>\n<p>The investigation concerns a private key holder\u2019s personal issue only. Further announcements will be made.<\/p>\n<p>\u2014 Jay_OKEX_CEO (@JayHao8) <a href=\"https:\/\/twitter.com\/JayHao8\/status\/1316973040882823169?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong>Update:<\/strong> The authoritative Caixin reported that OKEx and OKCoin founder Star Xu (Star Xu\/Mingxing Xu) <a href=\"http:\/\/finance.caixin.com\/2020-10-16\/101615507.html\" target=\"_blank\" rel=\"noopener noreferrer\">was detained<\/a> a week ago. In a literal translation, the outlet wrote that he was \u201ctaken away.\u201d In September 2018 he was briefly arrested in connection with one of the investigations related to cryptocurrency fraud.<\/p>\n<p>In a conversation with ForkLog, an OKEx spokesperson said that Star Xu is at the Beijing office.<\/p>\n<blockquote>\n<p>\u201cHe is not a key holder and cannot verify transactions. The police asked him to give a comment on the situation with the key holder whom they have questions about. We expect that after Xu&#8217;s discussion with the police withdrawals will be restored.\u201d<\/p>\n<\/blockquote>\n<p>It remains unclear how exactly the conclusion of Xu&#8217;s talk with the police would restore withdrawals if Xu is not the private-key holder.<\/p>\n<p>OKEx later emphasised that Xu does not participate in the company&#8217;s operational activities.<\/p>\n<p><strong>Update:<\/strong> According to Chinese media, two other top managers were detained along with Star Xu. As reported, they have been released on bail. The article claims that Xu&#8217;s detention is connected to the reverse listing of OK Group on the Hong Kong stock exchange (read more via the link), and not to OKEx&#8217;s activities. This information contradicts Caixin. It is not yet known whether the detained were executives at OKCoin or OKEx.<\/p>\n<p><strong>Update:<\/strong> After the suspension, an unknown Huobi user transferred 1,995 BTC to OKEx. Whale Alert logged transfers at 10:51 and 13:22 MSK.<\/p>\n<p><strong>Update:<\/strong> In the last 48 hours prior to the suspension, 10,000 BTC were moved out of OKEx. The outflow was recorded by Glassnode. However CryptoQuant contends that these are internal transfers.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Prior to the suspension of cryptocurrency withdrawals from <a href=\"https:\/\/twitter.com\/hashtag\/OKEx?src=hash&#038;ref_src=twsrc%5Etfw\">#OKEx<\/a>, we observed large BTC outflows from the exchange.<\/p>\n<p>According to our data, a total of 10,000 BTC (~$113 million) were withdrawn in two large batches in the past 48h.<a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a><\/p>\n<p>Live chart: <a href=\"https:\/\/t.co\/uMpGQIpIxN\">https:\/\/t.co\/uMpGQIpIxN<\/a> <a href=\"https:\/\/t.co\/I37lyKmcKI\">pic.twitter.com\/I37lyKmcKI<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1317082760700448768?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong>Update:<\/strong> OKEx told CoinDesk that the investigation is not connected with the exchange or AML procedures. This refutes rumours that the situation relates to money laundering via the platform, which had earlier been spread by 8btc co-founder Red Li.<\/p>\n<p><strong>Update:<\/strong> At 17:28 MSK, Whale Alert logged withdrawals from OKEx to Binance in two transactions: 5,000 BTC and 3,500 BTC. The channel administrator suggested these may be internal transfers within OKEx.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p dir=\"ltr\" lang=\"en\">\u2139\ufe0f We suspect these are internal exchange transfers. We are investigating the matter right now.<\/p>\n<p>\u2014 Whale Alert (@whale_alert) <a href=\"https:\/\/twitter.com\/whale_alert\/status\/1317115833513070596?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p>OKEx denies that the addresses belong to them.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">These are NOT okex address. <a href=\"https:\/\/t.co\/wwpN8PmGEQ\">https:\/\/t.co\/wwpN8PmGEQ<\/a><\/p>\n<p>\u2014 Lennix Lai (OKEx) (@LennixOkex) <a href=\"https:\/\/twitter.com\/LennixOkex\/status\/1317119705811857408?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong>Update:<\/strong> At the end of the day, OKEx again stressed that funds are safe, but withdrawals have not been opened.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">We\u2019d like to officially clarify: Withdrawals from <a href=\"https:\/\/twitter.com\/OKEx?ref_src=twsrc%5Etfw\">@OKEx<\/a> are still temporarily suspended, but all other operations are running smoothly. User funds are safe. Please check back here for the latest updates.<\/p>\n<p>Updated statement: <a href=\"https:\/\/t.co\/t4bifbtEC0\">https:\/\/t.co\/t4bifbtEC0<\/a><\/p>\n<p>\u2014 OKEx (@OKEx) <a href=\"https:\/\/twitter.com\/OKEx\/status\/1317153738230956032?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/p>\n<p><strong>Update:<\/strong> The community manager at OKEx, Anton Ananyev, told RBC-Crypto that ForkLog&#8217;s comment attributed to another employee of the exchange was \u201ca fabrication.\u201d We immediately provided colleagues with evidence that the comment was supplied to us by a real OKEx representative.<\/p>\n<p>OKEx spokeswoman Vivienne Chow later said that neither Ananyev nor the person ForkLog spoke with were authorised to provide official comments.<\/p>\n<p>We thank RBC-Crypto colleagues for promptly reacting to the defamatory statements by OKEx manager Anton Ananyev and updating their piece accordingly.<\/p>\n<hr \/>\n<p>Hours before the statement from OKEx, substantial sums moved in BTC, TRON and ETH. According to Glassnode, around 200,000 BTC (1.1% of the circulating <a href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#bitcoin<\/a> supply) are currently held in OKEx wallets.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">According to our data, around 200,000 BTC (1.1% of the circulating <a href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#bitcoin<\/a> supply) are currently held in <a href=\"https:\/\/twitter.com\/hashtag\/OKEx?src=hash&#038;ref_src=twsrc%5Etfw\">#OKEx<\/a> wallets.<\/p>\n<p>That is around $2.3 billion worth of <a href=\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$BTC<\/a> stored in the exchange\u2019s vaults. <a href=\"https:\/\/t.co\/xfOmlZyWbY\">https:\/\/t.co\/xfOmlZyWbY<\/a> <a href=\"https:\/\/t.co\/g2roJgFxNP\">pic.twitter.com\/g2roJgFxNP<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1317048711055331329?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Red Li, co-founder of 8btc, said that rumours were circulating about money laundering through 800 accounts on an unnamed exchange, hinting at a possible reason for the event.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\"><a href=\"https:\/\/twitter.com\/hashtag\/okex?src=hash&#038;ref_src=twsrc%5Etfw\">#okex<\/a> first stated withdrawal will be suspended 15PM but quickly changed to 11AM. Rumor has it that over 800 accs in \u00abcertain\u00bb exchange are involved with cross-border money laundering. <a href=\"https:\/\/twitter.com\/hashtag\/btc?src=hash&#038;ref_src=twsrc%5Etfw\">#btc<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/crypto?src=hash&#038;ref_src=twsrc%5Etfw\">#crypto<\/a> <a href=\"https:\/\/t.co\/mc67ZRCj6O\">pic.twitter.com\/mc67ZRCj6O<\/a><\/p>\n<p>\u2014 Red Li (@redtheminer) <a href=\"https:\/\/twitter.com\/redtheminer\/status\/1316965488363294720?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/p>\n<p>Users have already pointed to OKEx\u2019s private-key safety practices, including backups held by different people in different locations. On Twitter there is talk that law enforcement ordered withdrawals to be halted.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p dir=\"ltr\" lang=\"en\"><a href=\"https:\/\/t.co\/iCuUg56iUT\">https:\/\/t.co\/iCuUg56iUT<\/a><\/p>\n<p>so yeah\u2026 <a href=\"https:\/\/t.co\/vLZesmxYLg\">pic.twitter.com\/vLZesmxYLg<\/a><\/p>\n<p>\u2014 i.am.nomad (@IamNomad) <a href=\"https:\/\/twitter.com\/IamNomad\/status\/1316962672819273728?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p dir=\"ltr\" lang=\"en\">goes with this <a href=\"https:\/\/t.co\/zj5Zfsubyj\">https:\/\/t.co\/zj5Zfsubyj<\/a><\/p>\n<p>\u2014 i.am.nomad (@IamNomad) <a href=\"https:\/\/twitter.com\/IamNomad\/status\/1316967415918612480?ref_src=twsrc%5Etfw\">October 16, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/p>\n<p>Bitcoin prices and the exchange\u2019s OKB token fell immediately following the news.<\/p>\n<p>Recall that the U.S. Department of Justice had previously charged the BitMEX founders with violations of the Bank Secrecy Act. They face up to five years in prison.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"rqSIic4q7Y\">\n<p><a href=\"https:\/\/u1f987.com\/en\/news\/cftc-sues-bitmex-and-its-founders\">CFTC filed suit against BitMEX and its founders<\/a><\/p>\n<\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"\u201cCFTC filed suit against BitMEX and its founders\u201d \u2014 ForkLog\" src=\"https:\/\/u1f987.com\/news\/bitmex-charged-by-doj\/embed#?secret=jLrPOiGbAz#?secret=rqSIic4q7Y\" data-secret=\"rqSIic4q7Y\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>Separately, the U.S. Commodity Futures Trading Commission filed a suit against them and the parent company 100x Holdings Limited for violations of KYC\/AML rules and for operating an unregistered trading venue.<\/p>\n<p>Follow ForkLog on Telegram: <a href=\"https:\/\/t.me\/forklogfeed\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog Feed<\/a> \u2014 all the news, <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog<\/a> \u2014 the most important updates and polls.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cryptocurrency exchange OKEx suspended withdrawals. One of the private-key holders is not responding; at the time of writing he is cooperating with law enforcement.<\/p>\n","protected":false},"author":1,"featured_media":30177,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1166,1291],"class_list":["post-30176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-centralized-exchanges-cex","tag-okx"],"aioseo_notices":[],"amp_enabled":true,"views":"146","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/30176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=30176"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/30176\/revisions"}],"predecessor-version":[{"id":30178,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/30176\/revisions\/30178"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/30177"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=30176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=30176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=30176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}