This Friday the entire crypto world has been shaken, after OKEx, one of the most important exchanges in the market, announced that it would suspend all withdrawals in cryptocurrencies indefinitely. This after one of the exchange’s security code guards was detained by the police. Thus, and as long as contact with this person is not reestablished, OKEx suspends withdrawals indefinitely.
Without keys there are no withdrawals
Cryptocurrencies offer innumerable advantages for companies, organizations and individuals who use them. However, they also carry great responsibility. Well, unlike traditional banking, where there will always be a centralized entity that can help you solve any security problem. In cryptocurrencies, you are fully responsible for what happens with your crypto asset account.
Thus, if someone manages to enter your wallet and transfer your money, there will be no one who can prevent them. At the same time that if you send an amount of money to the wrong cryptocurrency address, the operation cannot be undone. Hence, exchanges establish multiple security mechanisms, including dividing access codes among several people, to avoid any breach in their cryptocurrency accounts.
Which, although of course, increases the security of an exchange over its cryptocurrencies, preventing anyone from making withdrawals of their money without the authorization of all key holders. It also represents a significant risk if, as has happened to OKEx, contact is lost with one of the people with the security keys.
OKEx’s nightmare
And, this Friday OKEx has announced the indefinite suspension of cryptocurrency withdrawals within the exchange platform. After the company lost contact with one of the people in charge of safeguarding the company’s security keys, one of the founders of the Mingxing “Star” Xu company.
OKEx reportedly lost contact with Mingxing, after the Chinese authorities detained him a week ago. In the midst of police investigations for what OKEx has described as “personal problems.”
Of course, the reactions were immediate in the crypto market. With the price of Bitcoin falling 3% in a few minutes, to $ 11,182, before recovering part of its value to $ 11,339 where it is currently trading. This as a reaction from BTC investors, given the prospect that OKEx users cannot make withdrawals, and therefore have access to their cryptocurrencies never again.
For its part, the company has tried to calm investors, despite the suspension of withdrawals, ensuring through a statement that they are “Unable to disclose the nature of an ongoing investigation, but we would like to assure all OKEx users that their funds are safe and that all other OKEx functions are not affected«.
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