OKEx: litigation continues
Unfortunately, the crypto industry cannot exist without criminal precedents, constant litigation and lawsuits. The thing is that large companies are closely watched by law enforcement officers. Which, one has only to notice some malfunctions in the work of a particular company, start proceedings. A similar thing happened with the digital exchange OKEx, which was at the center of a noisy financial scandal. Earlier we described the current situation, but today the events have received a completely new development. And we continue to inform you about the current state of affairs. So let’s get started.
How it all began
First, a background story for those who have not read our full analysis of the situation around OKEx. A large digital exchange has existed since the distant 2014, and during its work it has had an almost impeccable reputation. Of course, there were probably some minor disagreements with users, but they were quickly settled at the local level. However, on October 17 this year, several key persons of the enterprise were detained by law enforcement officers in China. The police detained the holder of the private key used for transfers, as well as the company’s CEO and a couple of top managers. That is, the entire top management of the enterprise came under investigation.
According to the official explanation of the reason for the detention, it became clear that the company was suspected of money laundering and the use of its own accounts in illegal operations. That is, the accusations, as you understand, are quite serious. The reason for paying close attention to OKEx was large transactions carried out in the shortest possible time. Recall: a few days before the arrest of the company’s representatives, about 10 thousand Bitcoins passed through the service for several transfers.
At the moment, withdrawals are still not available. Users will be able to receive their money no earlier than November 27. For the remaining 4 days, the company will have to receive all the permitting papers in order to confirm the purity of its own name. This was stated by the founder of the enterprise Star Xu, who noted that at the moment the company is in a complex litigation. What predictions can be made regarding the future of OKEx? What to do after opening external transfers? Let’s dive deeper.
The future of OKEx: a collapse of reputation or a proud victory?
No one would argue that being featured in headlines in the context of arrests and investigations is bad for brand awareness. It is possible that OKEx will suffer serious image and financial losses. It is possible that the company’s guilt will be proven and OKEx will be forced to pay serious fines. But, most likely, the exchange is innocent in this situation. Of course, the prosecution has serious arguments and confirmation of the validity of its own claims. Nevertheless, if the Chinese law enforcement officers had a clear understanding of why and for how much to arrest OKEx, the police would hardly have released the CEO of the firm and would hardly have allowed promises to withdraw funds after November 27.
Of course, we remain neutral, but we really do not want to believe that one of the oldest digital exchanges is involved in financial fraud. We sincerely hope that the proceedings will be in favor of OKEx. Should you work with the exchange after the end of the legal proceedings? It’s up to you to decide. But, in fact, there are no objective reasons for refusing to cooperate with this convenient and promising exchange. The main thing is to keep track of new developments in the cryptoindustry. Stay up to date with all the latest news from the world of Blockchain and technology with us. We publish only high-quality and interesting material. Thanks for attention. Good luck!
