OKEx Blocks Recalls, Reports Indicate CEO Arrested in China

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Another wave of news shocks the cryptocurrency market, as new reports indicate that OKEx Star Xu's founder and CEO is under arrest. Furthermore, it was revealed that XU was already questioned by Chinese authorities a week ago, prior to today's event. The Chinese financial news platform Caixin reported of the events on October 16.

The report claims that not only was Xu questioned by police in China, but he was also absent from work for an important period. When news platforms questioned the exchange and asked for a comment, OKEx responded by stating that they are no longer affiliated with the OK Group. Star Xu is a senior executive of the group and therefore OKEx is not in a position to comment on his activities in that company.

News of the investigation and subsequent arrest have circulated on social media platforms such as Crypto Twitter since this morning. Around 6 a.m. European local time, the OKEx exchange ad which temporarily disabled cryptocurrency withdrawals for all digital assets.

The announcement said that one of the exchange's private key holders "cooperates with a public security office" in an ongoing investigation. As a result, you cannot approve withdrawals while you are unavailable.

The announcement further notes that it will immediately enable withdrawals on the exchange as soon as the owner of the private key returns. At the same time, OKEx claims that all funds are safely stored and unaffected. How long this period will last is unknown. However, this is sure to leave a deep mark on the reputation of the most popular Asian cryptocurrency exchange.

Bitcoin Falls Following OKEx Announcement

The leading cryptocurrency reacted quite negatively to the news, along with the rest of the market. Last night, Bitcoin managed to regain the $ 11.5k area as support and hit a local high of $ 11,620. However, the digital asset was unable to advance further and finally fell after this morning's news.

As of this writing, Bitcoin is trading at $ 11,360. The asset fell to strong support levels at $ 11,200 and quickly rebounded.

It is not clear how the situation will develop further, both in the markets and on the exchanges. Unexpectedly, the markets did not charge an extremely high price and have rallied since noon. This may be a sign that the situation may not be as bad as it first appeared. However, this can also be a quick and unplanned reaction that will lead to an even bigger drop in prices.

Since this morning, the cryptographic analysis platform CryptoQuant revealed a large amount of information about whales and miners. The two groups have transferred a large amount of Bitcoin to centralized exchanges.

A message on his Telegram group CryptoQuant Alerts notes that the whales have transferred 2,152 Bitcoin to the Binance exchange. In another case, the company caught a move of 7,116 BTC to major exchanges like Gemini, Huobi Global, and Binance. In total, this single transfer is valued at $ 80 million. CryptoQuant also captured a smaller one that transferred 1,015 BTC. A similar amount was also reported shortly after being transferred to Binance.

Apart from whales, mining activity also grew. Cryptoquant reported "unusual miner departures" around 1pm. A single mining pool called "Unknown_m1" moved 545 BTC, valued at $ 6 million. These "hidden" movements from the market to exchanges may indicate that a larger movement could be coming. If so, the price of Bitcoin would drop further, as whales and miners would seek to sell their assets on exchanges.


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