on the crypto
Mingxing “Star” Xu, founder of OKCoin and CEO of OK Group, reappeared in public after being arrested by the Chinese police.
Xu detained for OKCoin investigation
According to a Bloomberg report, on November 19, Xu appeared on a private social media platform claiming that he had collaborated in an investigation related to a stock merger that OK Group had concluded years earlier.
The matter was part of a "complicated" legal case, Xu said, choosing not to go into detail. It is not clear exactly which agreement he was referring to. "The authorities have clarified the matter and proved that I am innocent," Xu wrote on Friday on his WeChat feed, Bloomberg reported. "In the next few days I will ask everyone who supported OK Group to express my gratitude."
Is he the mysterious holder of an OKEx private key?
As previously reported, Malta-based exchange OKEx was forced to suspend all withdrawals from its clients' accounts on October 16th. The reason given by the company was that an anonymous holder of one of the crypto exchange's private keys had been isolated by law enforcement due to an ongoing investigation.
A report by the Chinese newspaper Ciaxin said the key holder was Xu, based on sources "close" to the company. Xu's temporary detention and subsequent release closely coincides with the period in which the mysterious key holder was also unavailable.
OKEx resumes withdrawals for users
The exchange announced on November 19 that it will resume withdrawals by next Friday as the key holder had been released by the authorities and "is now back to his normal business functions."
OKEx pointed out that Xu has no direct relationship with the exchange. When asked to OKEx to clarify Xu's position in the exchange and why it might be in possession of the keys, OKEx replied: “OKEx has been a separate entity from OK Group since 2017. Star therefore had no role type in OKEx. In the interest of user security, OKEx keeps all details about private key holders as such confidential, for this reason we are unable to answer the question nor can we provide any comment on Star Xu, ”reiterated a representative.
The exchange said in its announcement that it is preparing to allow "unlimited withdrawals" by November 27. The withdrawal news has lifted the exchange's OKB token from a slump in the past month. OKB is now trading at $ 5,94, up about 23% since Wednesday, November 18.
