Bitcoin Plunges as OKEx Crypto Exchange Suspends Withdrawal

Major crypto exchange OKEx has suspended withdrawals as one of its key managers cooperate with an investigation. Following the announcement, Bitcoin and other cryptocurrencies bleed out and have wiped out most of the recent gains.

October 16, 2020 | AtoZ MarketsPopular Chinese cryptocurrency exchange OKEx, announced Friday that it has stopped withdrawing all cryptocurrency from 12:00 Japan time.

According to OKEx's announcement, one of the crypto wallet's private key managers is under investigation by a public security bureau” concerning authentication work. As a result, it is impossible to withdraw funds without contacting the key custodian.

OKEx suspends withdrawal but funds are safe

OKEx mentioned that with this measure, the service can be stopped or stopped at any time without prior notice based on "Service Articles of Incorporation 8.1". However, Okex says all services except withdrawals are operating normally, and the customer's funds are also safe.

However, the Malta-based exchange has said that the withdrawal function will be restored as soon as the prospect of private key management is established. Meanwhile, a similar announcement about Okex suggests that the parties involved in the investigation may have already been arrested, according to sources familiar with the matter.

According to Red Li, co-founder of China's leading crypto media 8BTC, OKEx originally planned to stop withdrawals from 15 pm, but changed that time and accelerated it. Red hints that Okex may be involved in international money laundering.

Cryptos drop in value

Following the announcement, that OKEx suspended withdrawals, Bitcoin price plunged about $300 from $11,500 to $11,200.

Most alternative coins have it worse than BTC. For example, OKEx’s native token OKB has plummeted 15%. Ethereum dropped 1.5% and is now struggling to stay above $370 after declining from $385. Ripple has issues maintaining its price level over $0.24 after dropping by 2.5% in a day. Litecoin (-4.4%) have lost the most value from the top ten coins while trading at $47.

Bitcoin Cash (-1.5%), Binance Coin (-1.5%), Chainlink (-2%), and Cardano (-2.2%) are also in the red.

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