Even after three weeks the payouts on OKEx remain switched off, but the crypto exchange denies rumours of a preliminary investigation.

The Malta-based crypto exchange OKEx, which shut down payouts in mid-October, continues to deny that an investigation is underway against the trading platform. The reports have been dismissed as „rumours“, but the payouts are still suspended three weeks later.

„The allegation that a person associated with OKEx is in custody has been refuted. We can confirm that this is a rumour“, as the Crypto Exchange wrote in a statement yesterday.

Cointelegraph has asked the OKEx for further comment but has not yet received a response at the time of going to press. This article will be updated as soon as feedback is received.

„Currently, as required by law, the person concerned is actively co-operating with the police authorities in an investigation“, as the statement states. And further: „OKEx has obtained legal assistance and has contacted the person concerned in the course of the investigation“.

On 16 October, the crypto exchange had announced in a statement that it was switching off the payout function. Several people are responsible for the management of the crypto-money stored on the platform and because one of these people was interrogated in the course of a police investigation and was therefore not available, all payouts were suspended for the time being. It is unclear whether the person mentioned in the latest statement is the same person referred to in the 16 October statement.

Only a short time after the payouts were suspended, rumours arose that OKEx founder Star Xu had been in custody for several days during police investigations.

Although the latest update of the crypto exchange does not shed light on the matter, it reaffirms to the public once again OKEx’s compliance with the law and that the crypto investors‘ funds are safe. „No funds have flowed from OKEx since the payout stop on 16 October“, as the communication states accordingly. Finally, the trading platform writes

„We can assure our users that 100% of their funds can be withdrawn once we lift the withdrawal stop. Our business is stable and normal“.

The interest of regulators in the crypto industry has increased noticeably in 2020, which is particularly evident in the lawsuit against the large crypto trading platform BitMEX.

Categories: Bitcoin

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