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OKEx to Reopen Withdrawals After Month Long Halt

Malta-based cryptocurrency exchange OKEx is set to reopen withdrawals on or before November 27 2020, according to its latest announcement. The news comes nearly a month after OKEx halted withdrawals and induced major suspense in the crypto community.

On October 16, 2020, OKEx became embroiled in controversy as its CEO was allegedly arrested, following which OKEx had suspended all cryptocurrency withdrawals. Now, according to the recent announcement, one of the private key holders of OKEx has finally completed assisting the authorities in an investigation.

While OKEx has refrained from taking any names, it has mentioned in the announcement that it was confirmed not to have been involved in any wrongdoing or illegal activities. 

As there have been rumours of OKEx founder’s release, the OKB coin, which is the in-house token of OKEx derivatives exchange, has seen a surge of 11% owing to greater optimism amongst crypto traders. 

OKB Price Chart | Source: CoinGecko

As the exchange gears up to reopen withdrawals soon, it intends to conduct strict security checks prior to resuming withdrawals, to resume normal operations of the hot wallet system and thereby ensure the safety of users’ funds. The announcement also added:

“Because OKEx has insisted on maintaining 100% reserves since its establishment, 100% of user funds can be withdrawn without any restrictions after withdrawals are reopened. Simultaneously, we will also be launching significant user loyalty reward campaigns to express our deep apologies and most sincere gratitude to our community.”

The OKEx withdrawal process involves passing checks of the Online Risk-Management System, after which the transactions successfully passing these checks are sent to the Vault System, which automatically creates an unsigned transaction. This is then sent to the Signature Task, followed by the Semi-offline Multisig stage. However, transactions are also required to pass the checks of the Semi-offline Risk Management system.

Therefore, OKEx’s hot wallet system is able to suspend large withdrawals by malicious users. In this context, the announcement has clarified that the unavailability of a private key holder for authorizing transactions was what had led to the suspension of withdrawals.

The exchange added that it is committed to improving its internal processes in order to prevent such situations from arising in future.

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