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No official statement from OKEx regarding withdrawal suspension is frustrating the users

Photo of: Janeth Diamond
by Janeth Diamond

On October 16th OKEx exchange had suspended all the withdrawals and ever since the withdrawal notice has not been lifted to resume normal operations within the exchange. The result is that the users of the exchange are extremely frustrated over the suspension and need more answers.

The suspension of withdrawals happened because one of the exchange’s private key holders is cooperating with the public security bureau in an ongoing investigation. A private key is a very sophisticated form of cryptography that lets the user access their cryptocurrency. When dealing with it, the user has to provide both public as well as a private key in order to send and receive coins but without the unique private key, it will not be able to do the same. 

The exchange has said that it has been out of touch with the key holder thereby preventing authorization of the transactions. It has assured that the security of the assets will not be affected by the event. OKB, the native exchange token for OKEx had lost nearly 20% of its market value on Saturday. This brings its total drop to roughly 30% ever since the second-largest cryptocurrency derivatives exchange suspended withdrawals early on Friday. 

At the last check, OKB was around $5.90 after which it plunged down to $4.10. The CEO took to Twitter to break the news. He said that all the user funds and assets are safe.

But now, investors need more answers. The restless users of the exchange are demanding answers from its top leadership as it has not been very forthcoming in terms of answers. Users are tweeting their demand for an answer. After his October 20th Tweet which said that they will resume services soon, nothing crucial has been spelled out. 

To add more fears in the minds of the users, some reports indicate that the police investigation has extended its wings to even the founder of the exchange Star Xu who has apparently been taken in for questioning. As a result, Twitter users are frustrated and it is growing ever since. One of the users of Crypto Twitter, Jojo said,

“It’s a bit weird one of the biggest exchanges in the world isn’t letting us withdraw money for so long.”

Many users have also complained that the OKEx lacks transparency which other exchanges offer. In fact, in one tweet the user compared the exchange to Binance’s transparent way of operations. 

“Where is your CEO, Jay Hao? He has to interact and give updated info frequently. When something happens with Binance, CZ tweets every hour.”

Douggie Clarke asked,

“With billions locked up and the reputation of the exchange at stake, what is the reasoning for not providing more transparency? For example, detailing how the key situation occurred.”

For many, the frustration has even driven them to opt-out of the exchange after it regains operation and gets access to their funds. OKEx is still not commenting on it, and if it does not release an official statement, it could lose out on a major portion of its user base.