OKEx has frozen the withdrawal of funds for its users

Crypto exchange OKEx has frozen the withdrawal of all funds amid cooperation in the investigation with law enforcementorgans, as a result of which thousands of people were deprived of the ability to control their means.

The situation around centralized cryptocurrency trading raises questions. Crypto exchange OKEx has been in the spotlight for two reasons:

• Firstly, the management of the site decided to temporarily stop the withdrawal of funds from it.
• Secondly, Chinese media reported that a week ago, the founder of OKEx, Minghing Xu, faced questions from law enforcement agencies in the Middle Kingdom.

Withdrawals of digital assets / cryptocurrencies @OKEx are currently suspended. Other functions are up and running. Your funds and assets are safe and not affected. Details: https://t.co/vMehdsZs1b

We sincerely apologize for any inconvenience. Further announcements will be made. pic.twitter.com/t14l7z0EUL

- OKEx (@OKEx) October 16, 2020

It is curious that with regard to both the two events themselvesin the life of OKEx, and the possible or impossible connection between them, there is no clarity. This uncertainty revealed a very important point: modern crypto-exchanges must develop standards of openness that would be no worse than those of, for example, brokers working with securities.

OKEx clients are currently unable to withdrawyour funds from the site. At the same time, by and large, all their interaction with the organization was built to a large extent on a not entirely clear financial perspective. It is not known whether it has public financial statements in accordance with international IFRS standards, which would be audited, for example, by one of the companies included in the Big-4 audit organizations of the world. There is no information about the presence of a credit rating from S&P, Fitch or Moody’s.

OKEx reassures customers:“We are doing everything we can to quickly resume our services.” Also, OKEx, as some media reports, makes a statement that it is no longer connected in any way with OK Group, in which Ksyu holds a management position, and therefore cannot comment at all on what is happening with Ksyu. At the same time, the Financial Times provides information received from the OK Group regarding OKEx.

Recently this is not the first unpleasantsituation arising in the field of centralized cryptocurrency trading. Thus, the US authorities had questions about the BitMEX crypto exchange, which belongs to a group of legal entities registered in the Seychelles.

It is worth noting that developing tradingservices within DeFi also carry risks. Apparently, the cryptocurrency industry has yet to develop standards of financial and investment openness that will be maintained at least at the same level as those of institutional investors. By the way, they are increasingly interested in buying bitcoins.

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