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OKEx Crypto Exchange Suspends Withdrawals After Police Investigation

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The popular and large cryptocurrency exchange OKEx has just announced they had to suspend cryptocurrency withdrawals from their trading platform. This comes after a police investigation that requested one of the private key holders to cooperate with a public security bureau. 

OKEx Suspends Crypto Withdrawals Due To Police Investigation

According to a press release published by OKEx, they have suspended their withdrawals pursuant to 8.1 Service Change and Interruption of the Terms of Service. The reason behind this decision is related to one of their private key holders cooperating with a public security bureau. 

On the matter, the official statement released by OKEx reads as follows:

“One of our private key holders is currently cooperating with a public security bureau in investigations where required. We have been out of touch with the concerned private key holder. As such, the associated authorization could not be completed.”

The information released by the platform does not inform which was the country performing the current investigation. Some analysts consider the situation could be related to money laundering issues. In addition to it, OKEx could have received 500,000 CNY (74,414 USD) from a fraud group that was previously hunted by the police. 

The exchange apologizes for any inconveniences caused due to the suspension of the withdrawals. Since the announcement was made just two hours ago, the entire cryptocurrency market lost around $10.74 billion of its valuation. This represents a 3.03% fall in just 2 hours. 

Since bottoming, it has retraced to the 0.5 Fibonacci level, close to 1.5% recovery. This could be pointing at a further depreciation of the crypto market cap. Bitcoin (BTC) fell by 0.4% in the last 24 hours and the digital asset with the worst performance among the top 10 has been Liteocin (LTC) with a price fall of 4.6%. 

Polkadot (DOT), Chainlink (LINK) and XRP follow with 4.57%, 2.42% and 2.4% price fall in the last 24 hours. OKB, the virtual currency of the exchange has registered almost 15% losses in the last 24 hours. In this way, OKB reached a market cap of $308 million, making it the 52nd largest virtual currency in the world. 

Exchanges have been affected by these issues many times in the past. It will certainly be important for the person being investigated to provide information about the private keys as soon as possible to the exchange so as to resume withdrawals for users. 

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