OKEx CEO Says Exchange Updating Procedures to Prevent Repeat of Withdrawal Freeze Issue

Jay Hao pledged in an AMA that his firm has taken steps to ensure cryptocurrency withdrawals won't again be frozen because of the absence of a keyholder.

AccessTimeIconDec 2, 2020 at 2:37 p.m. UTC
Updated May 9, 2023 at 3:13 a.m. UTC
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Jay Hao, CEO of Malta-based cryptocurrency exchange OKEx, said his firm has taken steps to ensure the issue that caused a freeze of over five weeks in cryptocurrency withdrawals cannot reoccur.

In an ask-me-anything (AMA) session, a transcript of which was published on Wednesday, Hao said the incident led the exchange "to make several improvements in our internal processes."

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  • "I think that the incident highlighted several very important points. It exposed some weaknesses in our internal processes, which we are now steadfast in correcting," he said.

    The CEO stressed that user funds had never been in jeopardy and that OKEx maintains backups of the crypto private keys. He didn't explain why they couldn't be used in this incident, however.

    On Oct. 16, OKEx was forced to halt withdrawals due to one of the key holders being held by authorities and "cooperating" with an investigation. The exchange managed to resume the service on Nov. 27, with OKEx saying the keyholder had been released and had not been involved in any wrongdoing or illegal activities.

    In the AMA, Hao acknowledged the issue was harmful for the company and that trading has dropped as a result. He further apologized to customers for the uncertainty, inconvenience and stress caused by the event.

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    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Tanzeel Akhtar

    Tanzeel Akhtar is a reporter based in London,UK.


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