Today i.e. 26th November, OKEx had restarted its withdrawal policy. It took about 5 weeks to the exchange to restore the withdrawals.
Earlier on 16th October, OKEx had initiated the policy of suspending withdrawals. It was told that one of its key person holding confidential data had gone missing. Rumors suggested that the exchange’s co-founder, Star Xu, was taken by local police. However this news was refuted by the exchange which stated that Star Xu was helping police in an ongoing investigation. The exchange also denied that it was involved in any illegal activities.
But since then the withdrawals were suspended and the customers were not allowed to take out their funds. This gave rise to unrest amongst the exchange’s customers who grew concerns over their funds/investment lying with OKEx. Some of them even went on so far to lodge lawsuit against OKEx and its officials.
Meanwhile, a week ago, the exchange announced full-fledge resumption of its services. OKEx had even announced that it will provide certain compensations and rewards to its customers who showed patience. These compensatory rewards included also commission rebates, one-time payment bonus, doubling of OKB based assets weight etc.
However, once the withdrawal resumed, it was found that many of exchange’s users started to re-locate their funds. It seemed as if the rewards and compensations were not enough to reclaim customers’ confidence back. It was reported that at least 3,000 of Bitcoin had been taken out from the exchange and relocated somewhere else. This was the highest crypto quantity moved in a year from OKEx by customers and that too in a single day.
OKEx is one of the most appreciated crypto exchange platform for many years. The services of the exchange were available in 100 plus countries of the world and currently host millions of customers. Daily trade volume of OKEx before suspension of its withdrawal was approximately US$ 1.5 Billion on daily basis.
Yet this huge quantity of Bitcoin taken out from the exchange had severely impacted the market volatility. Resultantly, Bitcoin had suddenly gone down considerably to US$ 17,133, which was otherwise around US$ 19,277.