Chinese publication Caixin said in a report that founder of Malta-based cryptocurrency exchange OKEx, Mingxing “Star” Xu, has not been available and is alleged to be held by police.
OKEx Founder Missing in Action
The report is not clear precisely where this happened; although OKEx is officially headquartered in Malta, it has its headquarters in Hong Kong. The article also doesn’t why Xu is being detained by police.
The news comes shortly after OKEx halted withdrawals from the exchange, citing the lack of an unnamed owner of the private keys of the exchange.
Jay Hao, OKEx CEO and co-founder, said on Weibo the problem is about a personal matter and does not impact OKEx.
While Caixin’s report indicated that Xu is the person linked to the withdrawal issues of the exchange, another report from Mars Finance’s media source indicated otherwise later in the day.
Mars Finance sources said Xu could be held to assist with an inquiry into the 2019 OK Group’s backdoor listing in Hong Kong and is not linked to the withdrawal issue of the exchange.
Mars Finance has said that two executives who were detained along with Xu were released on bail, but it is not known which organization they are affiliated with.
Cryptocurrency values took a dive when the OKEx news broke Friday, with bitcoin falling about 3 percent in half an hour.
What is OKEx?
OKEx is a cryptocurrency exchange located in Malta that offers a multi-cryptocurrency trading network. Spot and derivative dealing are some of the main functions of OKEx, which was founded in 2017.
The business announced its expansion to Malta on April 11, 2018, amid the country’s efforts to provide blockchain firms and digital asset exchanges with a sound regulatory structure.
In June 2018, the platform became one of the first exchanges to open and provide a white label service for cryptocurrency exchanges where candidates need to have good business expertise and $2.5 million in their accounts.