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OKEx changed its procedures to avoid any future withdrawal freezes, says CEO – Cryptocurrencies

OKEx and lost keys

Losing the keys or the access codes to your vault: unthinkable for banks? Cryptophiles love to criticize them, but at least they have the merit of having well-oiled procedures that keep their clients’ funds safe. After launching its rewards and loyalty program, OKEx is now trying to reassure its users that corrective measures are taken, to avoid another suspension of withdrawals on the platform.


The keys to change at OKEx

On December 2, 2020, during a question-and-answer session – Ask me anything, AMA – the CEO of OKEx, Jay hao, said the exchange had taken steps to avoid further incidents similar to the withdrawal freeze that occurred following the loss of private keys in October 2020.

One of the holders of the access keys had been detained by law enforcement authorities in an investigation which, however, had nothing to do with the exchange.

Withdrawal operations had been suspended from October 16, 2020. They resumed on November 27, 2020.

Hao stressed that the official had been released and was not involved in any criminal or illegal activity.

Reassuring but not convincing?

Jay hao acknowledged that this incident was indicative of the existence of weaknesses in the platform’s internal processes.

The CEO of OKEx insisted, however, that user funds were never at risk.

Furthermore, OKEx would keep backups of private keys which, for unknown reasons, were not used in this incident.

During AMA, Hao admitted that the issue had been detrimental to the company, resulting in a significant drop in trading volume.

He again apologized for the inconvenience and stress caused by this incident.

Despite these reassuring statements, users of ’OKEx made massive withdrawals as soon as they could.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Bitcoin (BTC) gives the power to control their money back to its holders, centralized exchanges are taking it back. The desire to decentralize the entire financial system suffers from a lack of consistency in the characteristics of the interacting subsystems. Combining a decentralized sub-system with a centralized one ultimately amounts to having a centralized system. OKEx deprived its users of their assets for weeks. A reassuring little speech and a few apologies and everything is forgotten and forgiven?

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