The current week brought too much drama filled with suspense, sadness, adventure, and motivation within the crypto industry.
This week one of the world’s most overwhelmingly popular crypto exchanges, OKEx, got too much attention from the crypto community. The exchange on the weekend of last week suspended the requests for withdrawals of funds to its customers. The suspension came without prior notice to the account holders of OKEx. This sparked a huge duress and trauma amongst the customers of OKEx. Some thought that a huge scam might have occurred to the exchange.
Yet the clarification from the exchange came out late in the weekend night. A representative of OKEx management informed the public that one of their main access key holders was not available. In its clarification, OKEx further explained that the exchange is currently helping a local bureau in an investigation. It was told that the key holder of OKEx was in the custody of the local bureau for investigation purposes.
However, the suspension of withdrawal by OKEx was not taken lightly. Analysts were of the view that the funds available with exchanges are not theirs. In fact, the exchanges are holding it as a custodian. Any suspension of withdrawals is not the prerogative of the exchange alone, they said. Exchanges are duty-bound to take all the stakeholders on the same page and then implement any such policy, said analysts.
Generally, any withdrawal request entails providing of security keys that are available with designated personnel of the exchanges.
However, the suspension of withdrawals OKEx sends an unoptimistic message across the entire crypto world and investors. It shows how unique is the infrastructure of the crypto industry. Yet to some the infrastructure shows that it is not unique but too much fragile.
If there is a threat, as a first step the exchanges suspend withdrawals immediately. But OKEx key holder wasn’t available and resultantly withdrawals were suspended, is uncalled for told various members of public.
Though the world’s biggest exchanges, such as BitMEX, have more than one key holder, yet it seems some still don’t. Analysts are of the view that the corporate structure of OKEx is relatively confusing. This has the potential of sending a negative message across crypto investors who might be thinking to invest with OKEx.