A Private Key Holder Was Not Able to Authorize Transactions

With respect to providing an explanation as to why withdrawals were suspended, the team at OKEx reiterated that a core member of the team was unable to authorize transactions.

They also explained that they had prepared for all scenarios of private key holders being unavailable except the one that transpired.

The reason for the suspension of withdrawals in this specific incident was because a private key holder was not able to authorize transactions. OKEx has always used a backup mechanism for private key holders to ensure that each private key holder can trigger the activation of the backup private key in the event of long-term incapacitation, such as death or memory loss.

However, we unfortunately failed to include other specific scenarios, such as private key holders becoming unreachable due to unforeseen circumstances in our contingency plan. In this specific incident, therefore, the ultimate resolution for the private key holder’s short-term incapacitation was not a technical one.

Quick take:

  • OKEx users will have unrestricted Bitcoin and Crypto withdrawals on or before November 27th
  • The exchange will also launch loyalty reward campaigns to thank the OKEx community for being patient
  • OKEx’s founder, Star Xu, has been reportedly released by Chinese authorities
  • The value of OKB has rallied by approximately 30% since rumors started circulating of Mr. Xu’s release, erasing all losses of the past one month

OKEx users can now breathe a sigh of relief as the exchange has announced that it will resume unrestricted withdrawals of Bitcoin and other cryptocurrencies, on or before November 27th. The team at the exchange will first conduct strict security checks before resuming normal operations.

Additionally, OKEx will launch loyalty rewards campaigns to express their deepest apologies and gratitude to the OKEx community for being patient with the process of resuming normal operations at the exchange.

Star Xu Reportedly Released by Chinese Authorities

The founder of OKEx, Star Xu, was the individual that many believe was unavailable after he reportedly was taken into custody by Chinese authorities back in mid-October. According to Wu Blockchain (tweet below), Mr. Xu was released less than 24 hours ago.

Breaking: OKEx, one of China’s largest exchanges, stated that the founder has solved the problem and returned to work and will open the withdrawal of coins before November 27. Wu exclusively disclosed that the founder of OKEx had restored his freedom 19 hours ago. 

– Wu Blockchain(Chinese Crypto Reporter) (@WuBlockchain) November 19, 2020

OKB Token Rallies by 30% Since Rumors of Star Xu’s Release Started Circulating

The native token of the OKEx exchange, OKB, experienced a massive rebound since rumors started circulating that Mr. Xu had been released. A quick look at the OKB/USDT chart reveals that 48 hours ago, the token was consolidating at around $4.60 before experiencing a parabolic run to $5.956. This means that OKB has gained approximately 30% in the aforementioned time period.

As a result, OKB token has erased almost all losses in the past one month as OKEx users mused on the worst-case scenario of their funds being permanently locked on the exchange.

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