OKEx founder in custody, payouts remain switched off

The founder of the OKEx crypto exchange is being questioned by the Chinese police.

According to media reports, the founder of the large crypto exchange OKEx is being interrogated by law enforcement agencies, which is why the trading platform has decided to temporarily stop its Crypto Cash scam.

OKEx founder Mingxing Xu, also known as Star Xu was taken accordingly by the police in custody, as the Chinese news agency Caixin reported

The investigations against the top manager of the crypto exchange are said to have been going on for „at least a week“, and Xu had already been partially absent from work during this time.

When asked by Cointelegraph regarding a possible pre-trial detention of Xu, OKEx replied that the trading platform no longer belongs to the OK Group, where Xu is officially in a leading position. Accordingly, one would not be able to comment.

The new message comes just a little later after it was announced that OKEx is temporarily suspending all crypto withdrawals. In this context, the crypto exchange announced that one of the platform’s key holders is cooperating with the security authorities and that the processing of the payouts must therefore be suspended. To this end, she wrote to Cointelegraph:

„We are not allowed to disclose any details about the ongoing investigation, but assure all OKEx users that their funds are safe and all other functions remain untouched.“

OKEx CEO Jay Hao emphasizes that the temporary stop of the payouts was made „with a view to the safety of the users“:

“As one of the leading crypto exchanges, the security of our users is something we at OKEx do not compromise on. We will do everything to switch the function back on as soon as possible and provide an update on the situation as soon as possible. „