In accordance with the researchers at Glassnode, OKEx holds $2.3 billion value of Bitcoin. The report comes after the alternate briefly suspended withdrawals on October 16.
In a public assertion, OKEx stated that one of many individuals holding a non-public key to the alternate’s pockets is cooperating with investigators. The assertion reads:
“Considered one of our non-public key holders is presently cooperating with a public safety bureau in investigations the place required. We have now been out of contact with the involved non-public key holder. As such, the related authorization couldn’t be accomplished… We guarantee that OKEx’s different capabilities stay regular and secure and the safety of your belongings at OKEx is not going to affected.”
Since exchanges use a chilly pockets to course of transactions, meaning OKEx can’t course of withdrawals with out the non-public key holder.
The surprising information rattled the Bitcoin market, principally as a result of dimension of OKEx as an alternate. It has remained one of many high exchanges within the international market, in each futures and spot.
The 15-minute value chart of Bitcoin. Supply: XBTUSDT on TradingView.com
Does OKEx’s Huge Bitcoin Reserves Change the Dynamic?
The massive Bitcoin reserve of OKEx has been public data for a protracted interval. However in accordance with Glassnode, that quantity hovers round $2.3 billion.
The alternate and CEO Jay Hao reassured traders that funds are protected. However the sheer dimension of the reserve makes the state of affairs extra advanced when it comes to its affect in the marketplace.
“In accordance with our information, round 200,000 BTC (1.1% of the circulating #bitcoin provide) are presently held in #OKEx wallets. That’s round $2.3 billion value of $BTC saved within the alternate’s vaults.”
The cryptocurrency market would react otherwise to a non-public key-related difficulty at a minor alternate and to one of many largest buying and selling platforms within the international market.
Trade CEO Reaffirms Funds and Property are Protected
In a press release, Hao stated that consumer funds on OKEx stay protected. He additionally famous that the investigation into the non-public key holder pertains to non-public points, to not OKEx’s operations.
“All operations @OKEx besides digital asset/cryptocurrency withdrawals stay unaffected. All of your funds and belongings are protected. The investigation considerations a sure non-public key holder’s private difficulty solely. Additional bulletins might be made,” he stated.
Thus far, on-chain information from CryptoQuant has discovered that outflows haven’t been noticed from OKEx. Which means the alternate reserves are usually not transferring and are nonetheless saved within the chilly pockets.
#OKEX outflow grew to become zero after suspending withdrawals. $BTC plunged sharply proper after the OKEX’s announcement. pic.twitter.com/Z0hSgpAl6s
— CryptoQuant.com (@cryptoquant_com) October 16, 2020
Primarily based in the marketplace’s pessimistic response to the information, as some trade executives counsel, traders could possibly be involved that one particular person might affect the withdrawals of an alternate with $2.3 billion in reserves.