In accordance with the researchers at Glassnode, OKEx holds $2.three billion price 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:
“One among our personal key holders is at the moment cooperating with a public safety bureau in investigations the place required. Now we have been out of contact with the involved personal key holder. As such, the related authorization couldn’t be accomplished… We guarantee that OKEx’s different capabilities stay regular and steady and the safety of your belongings at OKEx won’t affected.”
Since exchanges use a chilly pockets to course of transactions, meaning OKEx can not course of withdrawals with out the personal key holder.
The sudden information rattled the Bitcoin market, principally because of the measurement 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 based on Glassnode, that quantity hovers round $2.three billion.
The alternate and CEO Jay Hao reassured traders that funds are secure. However the sheer measurement of the reserve makes the state of affairs extra advanced by way of its influence available on the market.
“In accordance with our knowledge, round 200,000 BTC (1.1% of the circulating #bitcoin provide) are at the moment held in #OKEx wallets. That’s round $2.three billion price of $BTC saved within the alternate’s vaults.”
The cryptocurrency market would react in a different way to a non-public key-related subject at a minor alternate and to one of many largest buying and selling platforms within the international market.
Change CEO Reaffirms Funds and Belongings are Secure
In a press release, Hao stated that person funds on OKEx stay secure. He additionally famous that the investigation into the personal 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 secure. The investigation considerations a sure personal key holder’s private subject solely. Additional bulletins will likely be made,” he stated.
Up to now, on-chain knowledge from CryptoQuant has discovered that outflows haven’t been noticed from OKEx. Meaning the alternate reserves usually are 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 available on the market’s pessimistic response to the information, as some trade executives counsel, traders might be involved that one particular person may influence the withdrawals of an alternate with $2.three billion in reserves.