Over $118 Million Worth of BTC Moved In and Out of OKEx While Withdrawals Are Suspended

OKEx is facing hard times with its legal troubles recently, forcing users to keep their funds in the exchange as announced on October 16. Bizarre BTC transfers related to the exchange have followed shortly. In fact, over $118 million worth of Bitcoin has been moved in and out of OKEx while withdrawals were prohibited.

$22.5 Million BTC Moves From Huobi to OKEx

According to blockchain tracker Whale Alert, $22.5 million worth of BTC was transferred from Huobi to OKEX, just after the latter announced its suspension of withdrawals yesterday.

The digital tokens were sent in two separate transactions of 998 BTC and 997 BTC, respectively. This event was met with mixed responses, with some commenting on its absurdity while others are pointing out that this could simply have been the result of delayed transactions.

$96M Massive Outflows From OKEx

Four hours after the inflows, the Whale Alert service has yet again found two large transactions that were sent from OKEx to Binance exchange, carrying a total of 8500 BTC (worth $96M) in two transactions. It must be noted that these are outbound transfers, and they were conducted while OKEx withdrawals were still officially suspended.

Until now, the exact nature and purpose of these transactions aren’t known. But according to Whale Alert:

“We suspect these are internal exchange transfers. We are investigating the matter right now.”

However, seeing these outbound transfers has caused concern for users who are yet able to withdraw their funds. OKEx communication hasn’t been clear in this regard either. 

Background – OKEx’s Legal Troubles And Suspended Withdrawals

OKEx exchange suspended withdrawals on Oct 16 until further notice, insisting that other functions aren’t affected and that the funds are safe. The development came after one of its founders Mingxing Xu was picked up by Chinese police over a week ago. The exchange OKB token price plunged soon after. 

Mr. Xu is believed to have recently “lost contact” with other exchange officials. And being one of the “cold wallet” signatories, he is unable to authorize transactions by himself. It is interesting to observe, however, that hours prior to the suspension of withdrawals, assets worth millions of dollars were moved from the exchange.

Even though the exchange insists that Mr. Xu’s undisclosed issues with law enforcement are of a personal nature and not related to the exchange’s business, there are rumors circulating that the exchange is under active investigation for involvement in money laundering and liquidating assets for the Plustoken scam.

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