The price of OKEx’s OKB token has surged more than 16% on rumors suggesting that the person with who the firm lost contact that held the private keys to its wallets while cooperating in an investigation is soon set to be released from police custody.
The person OKEx revealed it lost contact with is believed to be the firm’s founder Mingxing “Star” Xu. As CryptoGlobe reported, OKEx suspended withdrawals as Xu cooperated with an investigation. In statements, the exchange has denied the investigation was related to money laundering.
On social media, various rumors now suggest Xu is soon going to be released from police custody, which presumably means withdrawals will once again be reopened at OKEx for cryptoassets, as access to the private keys will be restored. OKEx is said to already be in contact with Xu.
Reacting to reports on the rumors Jay Hao, OKEx’s CEO, asked his followers on social media to “stay tuned for the official announcement,” and guaranteed “all user funds on OKEx remain safe & unaffected.” All of the funds stored on the exchange will be available for withdrawals as soon as these are resumed.
Reenabling withdrawals could mean a return to normal for the cryptocurrency trading platform, and the price of the OKB token appears to reflect investors’ sentiment. CryptoCompare data shows that the token’s price fell from around $6 after withdrawals were suspended and traded down to a $4.15 low, before recovering slightly. As rumors started surfacing, the token jumped and is now trading at $5.75.
The primary use of OKB are discounts on trading fees and collateral for margin trading at OKEx, but the token can also be used outside of OKEx, in an ecosystem made of partners of the exchange that accept OKB as a payment method.
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