On October 16th, Malta based exchange, OKEx, suspended its withdrawals, as their founder and key holder Mingxing “Star” Xu was taken into police custody.
The team continues to insist that the user funds are still safe and all non withdrawal functions will be working as usual.
It has been over three weeks since the suspension of withdrawals but there has been no update from the team.
This leads to frustration and trust issues among its users. The exchange happens to be the second largest exchange in terms of trading volumes.
Could this be another Cryptopia in the making? Cryptopia as readers may remember disclosed bankruptcy after a few days of suspending withdrawals.
What does this mean to its users?
Mt.Gox took quite a few years to repay its users and it is still in the process of doing so. People still question the fairness of the process.
If OKEx goes in the same path of settling with users in the years to come, what happens to the altcoins that are stored on the exchange? How many of those will survive by the time the team figures out ‘how to repay’ them to the owners?
Many users are now weary of the chances of OKEx getting back on track from where it is now.
How irresponsible were the team to rely on just one person (key Holder) to take care of the private keys to the entire exchange?
This is also a great reminder for crypto users that ‘not your keys, not your coins’ and the statement keeps proving itself over and over.
Keep an eye on the live updates page
For those who are waiting on withdrawing their funds from the exchange, keep an eye on their live updates page.
According to the latest update (October 30), here is what we know:
“Withdrawals from OKEx are still temporarily paused. All other platform operations that don’t involve withdrawals remain up and running. The security of user funds is our top priority, and all user funds remain safe and unaffected. We are working hard to resume full platform functionality. Please check this article for further updates.”
While users panic about their funds on the exchange, OKEx seems to operate in the business as usual mode with updates on new features and services.
While this could be viewed as good news because for all ‘aesthetics’ everything seems fine, it still begs the question…
How did a massive exchange like OKEx have private keys vested in the hands of one individual? What kind of security protocol is that?
We patiently await for the exchange to address this question and release the funds they are holding hostage.
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