The cryptocurrency exchange giant OKEx is finally resuming withdrawals of customer assets after weeks of waiting. The crypto exchange first suspended withdrawals on October 15, a decision that subsequently rocked crypto markets. According to today’s announcement, full customer withdrawals will resume on November 27. OKEx will conduct security checks to resume hot wallet operations and ensure that user funds are safe. The crypto exchange claims that user funds are covered by 100% reserves, and therefore, “can be withdrawn without any restrictions after withdrawals are resumed.”
Resumed withdrawals will coincide with a user loyalty reward program.
Resumed withdrawals will coincide with a user loyalty reward program for users as a way for the exchange to apologize for the extended freeze on user funds. However, details regarding the program will be released within the next few days. Today’s announcement does not elaborate on why the exchange initially decided to freeze withdrawals. Following the initial suspension, reports started circulating that Chinese authorities’ OKEx founder Mingxing Xu was under investigation. Just hours before the crypto exchange stopped withdrawal, Whale Alert reported a number of large transfers between OKEx and unknown wallet addresses.
China cracks down on crypto exchanges ahead of the digital yuan launch.
The Chinese authorities are cracking down on crypto exchanges ahead of the Chinese CBDC launch. A popular Chinese cryptocurrency journalist, Colin Wu, had earlier reported that the local cryptocurrency exchange TokenBetter users could not take their money back. The local crypto exchange blocked withdrawals amid the investigations by the police in Sichuan province. As reported earlier, OKEx had suspended withdrawals on October 16, citing that the private key holder was working with the law enforcement authorities.