Bitcoin and Tether Selling at 30 Percent Discount on OKEx Following Withdrawal Suspension

​Despite assurances from the crypto exchange platform OKEx, users have reportedly begun to fear the worst. 

According to live updates from OKEx on the situation of pending withdrawals, the funds are safe and unaffected in spite of almost two weeks of suspended trading. The owner of the exchange, Xu MingXing, has been taken in and is still held by the Chinese police.

OKEx Exchange Owner Under Police Investigation

The cryptocurrency exchange platform’s owner has been bought in by the police on October 16th, and since then, withdrawals have been suspended on the website.

Although Xu’s apprehension is reportedly not related to the exchange, the police have ordered the suspension of withdrawals to allegedly conduct investigations. According to Chinese law, if Xu is not getting released within two weeks – which complete tomorrow – he will be arrested.

This could mean that the withdrawal resumption will be further delayed.

Obviously, long delays in withdrawals are never a good sign. A few past instances, such as the Bitfinex hack in 2016 and the QuadrigaCX​ incident, were preceded by such delays. The current OKEx situation has a striking similarity with the QuadrigaCX​ event: the sole owner of the exchange’s private key is the CEO.

The Bitcoin balance on the platform is above 205,000 BTC, worth $2.7 billion – the sum accounts for 1.1 percent of Bitcoin’s total circulating supply. OKEx is also the largest futures platform with a massive volume of futures contracts worth around $1.02 billion.

The only option remaining for OKEx users – if the withdrawal restriction remains – is to sell their funds via the exchange’s P2P platform. According to reports, users are already leaving the exchange as the delay continues. Bitcoin and USDT are selling at a discount on OKEx at around $10,000 and $0.75, respectively.

OKEx pool Bitcoin hashrate. Source Okex - Bitcoin and Tether Selling at 30 Percent Discount on OKEx Following Withdrawal SuspensionOKEx pool Bitcoin hashrate. [Image Source: Okex]

Also, the hashrate on the OKEx mining pool has plummeted significantly as the withdrawal restriction got implemented. Even if the platform or the owner is not to worry about, the withdrawal delays make users anxious, and the exchange keeps losing credibility.


Trending news

Top Exchanges
Icon
CEX.IO

3

Website

Icon
Coinbase

2

Website

Icon
Binance

1

Website

Top Casinos
Icon
7bitcasino

4.20

Website

Icon
BitStarz

5

Website

Icon
FortuneJack

4.55

Website

Top Sportsbook
Icon
1xBit

4.03

Website

Icon
Nitrogen Sports

4.73

Website

Icon
SportBet.io

4.60

Website

Eduard Watson Author

An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.

2513 Articles

Top Exchanges
Icon
CEX.IO

3

Website

Icon
Coinbase

2

Website

Icon
Binance

1

Website

Top Casinos
Icon
7bitcasino

4.20

Website

Icon
BitStarz

4.93

Website

Icon
FortuneJack

4.90

Website

Top Sportsbook
Icon
1xBit

4.03

Website

Icon
Nitrogen Sports

4.73

Website

Icon
SportBet.io

4.60

Website

Trending news