Cryptocurrency, News & Updates

Withdrawals Suspended, OKEx Chief Taken into Custody

OKEx, a large cryptocurrency exchanges in the world, is now trapped under some legal issues recently.

OKEx’s Head now in Custody

In the previous week, it has been reported that the company has suspended all its withdrawals, further alleging that it has lost access to one of the private keys needed for maintaining the funds and keeping the transaction records. But it is now being purported that the exchange founder has been arrested and is now in Custody. That was the reason for the suspension.

The founder of OKEx is Xu Minxing. He was taken two weeks ago and has failed to make the meetings scheduled in an office-based social media platform that the company is using to send the messages and further discuss the operations with the team members.

It is not yet clear what he has been arrested for and what the corresponding investigation is about. However, there has been a boost in the raids on the companies that have potentially been involved in money laundering and some financial crimes. Some analysts guess if Mingxing is involved with a case like that.

OKEx had elaborated that the private key holder cooperates with the legal authorities with what the company calls a “public security bureau.” It is still a blur where the bureau is, although some anonymous employees from the exchange have ostensibly confirmed with other sources that the keyholder is Mingxing, who they claimed has a very “hands-on” approach managing the money.

The situation is parallel in that Mingxing had been accused of a fraudulent characteristic before. Two years ago, in September, many people had filed complaints against OK Coin, claiming that they have incurred massive losses because of the platform crashing after the bitcoin’s price fell. He was then later detained by the police. OK, Coin has closed the China headquarters after the nation had banned the ICOs.

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