Popular crypto exchange firm, OKEx, announced earlier today that they would be lifting the withdrawal freeze it placed on its users next week. OKEx’s earlier decision to temporarily halt any form of withdrawal had started on October 16. Since then, it generated loads of panic among its users.
According to rumors making the rounds then, the exchange founder, Mingxing Xu, was alleged to have been arrested by the Chinese authorities. However, the company insisted that none of its top executives were in police custody.
OKEx Reveals why it Suspended Withdrawals on its Exchange Platform
OKEx went on to reveal that the reason behind the suspension of withdrawals on their platform was because a private key holder had finished assisting the authorities in an investigation.
According to the exchange, the involvement of this keyholder with the authorities prevented him from being able to authorize transactions happening on the exchange. They went on to state that its contingency plans for private keyholders did not cover all possible scenarios. According to OKEx:
“We unfortunately failed to include other specific scenarios, such as private key holders becoming unreachable due to unforeseen circumstances into our contingency plan.”
This appears to have played a major role in the exchange’s inability to carry out any form of transactions on its network.
OKEx to Reward Their Users for Their Patience
OKEx has announced that it would start a user loyalty reward program immediately after withdrawals are enabled on its platform. This reward program would be the firm’s way of apologizing to its users due to the inconvenience they have caused them.
According to the announcement, more information regarding how the rewards would be earned will be shared in the coming days.
The crypto exchange has also stated that it would be conducting a security check on its user funds. This is necessary to ascertain if user assets are still safe and secure within the system.
OKEx has also gone ahead to assure its users that their funds are covered by a 100% reserve. This, therefore, means that the users are free to make withdrawals without any form of restrictions on their accounts. They would be able to do this immediately once withdrawals are reopened on the platform.