Mingxing Xu, also known as Star Xu, the founder of OKEx, has been reportedly questioned by authorities previous to OKEx suspending cryptocurrency withdrawals.
It has been reported that he was investigated “at least a week ago” and has also been absent from work for some time.
However, when approached for comment on Xu’s participation in a police inquiry, OKEx said that the exchange is no longer affiliated with OK Group, where Xu is a senior executive, and therefore was not in a position to comment on his activities.
The founder of major #crypto exchange @OKEx was investigated a week ago, reports claim https://t.co/ALWkF6vrdE — Cointelegraph (@Cointelegraph) October 16, 2020
The news comes shortly after OKEx suspended withdrawals of crypto assets on its platform yesterday. According to the exchange, OKEx’s private key holders are cooperating with a public security bureau in an ongoing investigation.
The exchange stated:
“We are unable to disclose the nature of an ongoing investigation but would like to assure all OKEx users that their funds are safe and that all other functions on OKEx are unaffected.”
Likewise, Jay Hao, the CEO of OKEx, said that the decision to temporarily suspend withdrawals was taken “with user security in mind.”
Thus, he added:
“As a world-leading exchange, user security is not something that OKEx can or will ever compromise on. We will do everything in our power to reinstate this service promptly and will provide updates on the matter as soon as possible.”
Source: Cointelegraph