Top cryptocurrency exchange OKEx is in the news this week, with the exchange suspending withdrawals on its platform amid possible money laundering concerns. While the company is trying to placate its customers that their funds are safe, however, a top official has apparently been roped into an investigation.
Earlier this week, local news source Caixin reported that Mingxing “Star” Xu, one of OKEx’s founders, was recently questioned by police officers. As the news source reported, Xu was questioned about a week ago and has missed work steadily since then.
While disturbing, the report also had some vagueness to it. For one, Caixin failed to say where the investigation took place, as OKEx is headquartered in Malta but also has an office in Hong Kong. The news source also didn’t tell if he was still in police custody.
The development is coming after OKEx froze customers’ withdrawals on its platform. The exchange claimed in a statement that it was having issues with one of its private key holders and had been unable to reach him.
“One of our private key holders is currently cooperating with a public security bureau in investigations where required,” the company said in its statement, adding, “We have been out of touch with the concerned private key holder. As such, the associated authorization could not be completed,” the exchange pointed out.
The exchange had been making some big-money transfers in the hours before it initiated the freeze. According to updates from on-chain tracker Whale Alert, it conducted outgoing transfers of 1,180 BTC (about $13.6 million), 50 million TRX (worth about $1.3 million), and 21,000 ETH (worth about $7 million) to unknown wallets. The exchange also got a transaction worth about $14 million in USDT tokens about six hours before the announcement came out.
It’s unclear what prompted the entire thing. However, Colin Wu, a reporter for WeChat public account Wu blockchain, posited on Twitter that the whole thing could be a case of money laundering.
Earlier, Wu had exclusively disclosed that the OTC merchant on OKEx had mistakenly received 500,000 CNY from the fraud group and was hunted by the police across the provinces.
— Colin Wu（WuBlockchain） (@WuBlockchain) October 16, 2020
“The Chinese government is cracking down on money laundering using cryptocurrency for telecom fraud, and centralized exchanges are in a very dangerous state,” Wu claimed.
Although Caixin claimed that Xu is the key holder in question, news source Mars Finance claimed otherwise in a competing report. As the news source guessed, Wu could be in custody concerning a backdoor listing for the OK Group in Hong Kong last year. OKEx has also severed ties with Xu. The exchange explained that the founder hadn’t worked with the exchange in a while.
Even more complicated is the fact that OKEx appears to still be moving funds despite the withdrawal freeze. Earlier today, Whale Alert confirmed that the exchange had made two transactions – worth 998 BTC ($11.3 million) and 997 BTC ($11.3 million) in the early hours of the day.
While some have suggested that they could merely be delayed transactions, others believe that there is some manipulation afoot.
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India’s First Business-to-Business (B2B) Crypto Exchange ‘DigitX’ Launched |
Building on the opportunity of Trust, Transparency and Security in Crypto trading, today DigitX, India’s first Business-to-Business (B2B) Crypto trading exchange announced commencement of its trading operations. In a highly potential yet challenging market, DigitX aims to deliver transparency and security with its Par Excellence Platform armed with unique features to bring about a much-needed trust and confidence for the investors and traders of Crypto.
DigitX for the very first time in India brings along a network of pre-verified, trained and closely monitored Trusted Links (members) to ensure a secure Crypto trading ecosystem. Investors can choose the Trusted Link closest to them, which are thoroughly scrutinized and are extensively trained for completion of processes with near-nil errors and with complete satisfaction of Investors. DigitX Error! Hyperlink reference not valid. combines the power of technology, proven trade models and best regulatory practices to lead a change in people’s involvement in the digital economy of the future.
Speaking on the occasion Mr. Ashish Mehta, Co-founder, DigitX said, “At DigitX, with our unique model of trusted links, we are bringing very first time the advantage of the traditional equity and commodity market to enthuse the trust in Crypto trading. Crypto today enjoys a high degree of popularity among a certain section of the investor community though even since its inception Crypto have had a roller coaster ride, as it faced questions on security and transparency. It is our sincere initiative, to educate investor’s community and people at large about the potential of this alternative asset class, which works on the principle of super-efficiency through Blockchain. We are starting operations with our select set of trusted members and by the end of 2021, we are aiming to have 100 trusted members on board.”
On the importance of regulating the Crypto trading, Mr. Ashish Mehta said that, “Crypto is an alternative asset class, which promises to bring in a lot of efficiencies, positive disruption, scalability and are quick in adaption backed by very efficient technology backbone. We firmly believe in the positive role it can play in our economy riding on Blockchain and Distributed Ledger Technology. It is our view that to further expand this opportunity, the Crypto should be regulated by the legitimate financial institutions of the country. We hope that the industry and all stakeholders can work in this direction.”
To protect the interests of honest investors, the best practices and norms of cryptocurrency as well as the Indian stock and commodities exchanges are adhered by DigitX. It is powered by world-class technology, giving it an edge in closing the best trades with secure transactions being fundamental importance.
About DigitX India
DigitX is India’s first B2B exchange for trading in cryptocurrency, which brings in transparency, security and trust with its chain of members across the country. It is not a typical exchange present today. It combines the power of technology, proven trade models and best regulatory practices to lead a change in people’s involvement in the digital economy of the future. This is going to be first of its kind exchange where, Customers can engage with Exchange’s members for trading in Crypto Currency as currently customers directly engages with Exchange. DigitX currently is in conversation with around 25 to 30 mid-size members to engage them to participate in Crypto Trading through its platform. It has plans to engage around 100 members by December 2021.
Author: News Bureau
Crypto: Bloomberg: 2000 Robinhood accounts hacked
Bloomberg: 2000 Robinhood accounts hacked
Hackers hacked about 2,000 accounts on the Robinhood platform, Bloomberg writes, citing anonymous sources. They added that the company’s customers did not get help from the use of two-factor authentication. Robinhood did not disclose the amount of damage.
The platform reported last week that since September, hackers have cracked a certain number of customers’ personal e-mail passwords. As a result, their funds were threatened.
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