BTC and OKB plunge after OKEx suspends withdrawals

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Major crypto asset exchange OKEx has suspended cryptocurrency withdrawals, announcing that one of the holders of its private keys is “currently cooperating with a public security bureau” with regard to ongoing “investigations.”

The exchange noted that it has been “out of touch” with said key-holder, preventing the exchange from being able to complete the “associated authorization” request. OKEx plans to resume digital asset withdrawals “immediately” once the key-holder “is able to authorize the transaction.”

OKEx added that the security of its customers’ assets “will not be affected” by the events.

Bitcoin (BTC) has fallen nearly 3% in the immediate aftermath ofthe news, while OKEx’s native token OKB has crashed 15%.

Beijing based reporter Colin Wu, who writes at WeChat public account @wublockchain tweeted that an “OTC merchant on OKEx had mistakenly received 500,000 CNY from the fraud group and was hunted by the police across the provinces.”

Wu also suggested the investigation may be related to money laundering:

“The Chinese government is cracking down on money laundering using cryptocurrency for telecom fraud, and centralized exchanges are in a very dangerous state.”

However, Wu’s information is currently unverified.

More to come soon…

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