Founder Xu Xingxing is investigated by police, okex 15 billion yuan bitcoin cannot be extracted


Author: Zhou Ailin
[some institutions have said that there are a large number of investors’ digital currency assets such as okb, bitcoin, Ethereum, etc. in okex’s wallet, the number of bitcoin alone is 200000. ]
Recently, okex, a well-known cryptocurrency exchange, issued a “suspension of withdrawal notice” because “founder Xu Xingxing was taken away by the police”. According to some institutions, okex’s wallet contains a large number of digital currency assets such as okb, bitcoin, Ethereum and so on. The number of bitcoin alone has reached 200000, about 15 billion yuan.
According to okex’s statement, it is possible that some of the private key holders of the exchange wallet lost contact due to cooperating with the public security organ’s investigation, resulting in the user’s inability to withdraw money.
On October 19, a notice issued by auco cloud chain (01499. HK), controlled by Xu Xingxing, said: “the company was informed by the legal adviser representing OKC Holdings Corporation on October 16, 2020 that Xu Xingxing is currently under investigation by Chinese public security organs. The company has not yet contacted Mr. Xu to verify the information. Mr. Xu is a non-executive director of the company and, through his interest in OKC, a controlling shareholder of the company. ” Auco cloud chain shares fell 14.77% to HK $0.15 on the 19th.
Oko cloud chain personage said to the first finance and economics reporter that at present everything is subject to the announcement.
At present, what is the connection between Xu Xingxing’s investigation and okex’s inability to withdraw money at the same time? When can the withdrawal of currency be resumed? Some people in the cryptocurrency circle told the first finance and economics reporter that they could not withdraw the money. On the one hand, they might be afraid of a run by users. On the other hand, the exchanges often have a number of cold wallets that are not commonly used. The key of the wallet is in the hands of the big boss, or the key of the wallet is encrypted with multiple signatures. Among them, the signature of Xu Xingxing is required to open the private key “vault”.
It is worth noting that in September 2017, after China comprehensively stopped the issuance of ICO (virtual token issuance) and identified ICO as illegal financing behavior, many digital asset trading platforms sought to go out to sea, and now these platforms are facing more stringent supervision.
It is unknown when the money can be withdrawn
According to okex’s announcement, recently, some of the company’s private key principals are cooperating with the public security organ’s investigation, and are currently in the state of loss of connection, resulting in the failure to complete the authorization. Therefore, from 11:00 on October 16, 2020, okex decided to suspend users’ withdrawal of coins. The announcement also said, “to ensure that other functions of okex are normal” and “the safety of assets will not be affected”.
Subsequently, Jay Hao, who was certified as “CEO of okex digital asset trading platform” on Sina Weibo, replied, “it’s a personal problem of the private key manager, so we’ll temporarily stop withdrawing money.”.
Public key and private key is a key pair obtained by encryption algorithm. Public key can be used to encrypt and verify digital signature. Only the corresponding private key can be decrypted. The public key is the public part of the key, while the private key is the non-public part, which is kept by the user himself.
“This kind of” private key manager “is common in many exchanges, but there are other ways to do it, such as” signing more “. For example, more than two-thirds of the people can open it after signing. This may also be the performance of Xu Xingxing who is not at ease with other people.” A cryptocurrency exchange person told the first finance and economics reporter.
Since then, Lei Zhen, former okex partner, said in the wechat group: “it has nothing to do with the blockchain. Xu (Xu Xingxing) cooperates with the investigation on other matters and hopes to help him solve this problem as soon as possible.”
At about 18:00 on October 16, okex replied to the news agency that the investigation had nothing to do with money laundering or the exchange itself, and that all services would be restored as soon as possible.
There is a view in the currency circle that the real reason why Xu Xingxing was taken away to assist in the investigation may be related to the backdoor listing of auco group in Hong Kong last year. At that time, a sum of money to buy a shell came from an underground bank in Shanxi, which has been put on file for investigation by the police. However, there is no official information on the current situation.
Oko cloud chain’s announcement also confirmed that Xu Xingxing is cooperating with the public security organs to investigate. OKC holds 3904925001 shares of OKC cloud chain, accounting for 72.60% of the total issued share capital of the company.
The okex exchange was established in January 2014 and its official website is located in Kuala Lumpur, Malaysia. According to the ranking of coinmarketcap website, the 24-hour trading volume of okex exchange ranks 11th in the world. The platform and its founder, Xu Xingxing, have been involved in controversial events for many times.
Xu Mingxing is the founder of okcoin and okex, which were established in 2013 and 2014 respectively. In 2018, okex was involved in a number of rights protection disputes. In September of that year, Xu Mingxing announced that he would resign as CEO of okex. Since then, Xu Xingxing and okex have gradually drawn a line. Xu Xingxing appeared as the founder of Oko cloud chain group (formerly OK group). Founded in 2013, Klink provides blockchain technology and blockchain services.
At present, people of all walks of life are undoubtedly most concerned about when the money can be withdrawn. Investors are alarmed by the announcement of “suspending the withdrawal of currency”. Some investors claim that the digital currency worth 700000 yuan is in the wallet of okex exchange. Last year, okex also had disputes over freezing and “disappearing out of thin air” huge accounts.
Some people in the currency circle believe that “unless Xu Xingxing hands over his private key, okex users may face an indefinite liquidation. If okex has no loss, it can be liquidated. If so, the user’s assets will not be fully liquidated. ”
Offshore platforms attract more attention
After the ICO was banned, many digital asset trading platforms claim to be transferred to overseas, and try to cut the connection with domestic companies.

For example, since November 2019, OK group has launched its Chinese brand name “auco group”, headquartered in Beijing, China, to position itself as a global large-scale blockchain technology and service provider. According to the terms of service on the official website of the okex trading platform, the companies providing services are okex Malta Ltd in Maltese and aux Cayes fintech CO in Seychelles. Ltd。
For another example, on September 10, 2019, Tongcheng holdings announced that the Chinese name “Tongcheng Holding Co., Ltd.” would be changed to “Huo coin Technology Holding Co., Ltd.”. At the same time, the company appointed Mr. Li Lin as the executive director, chairman of the board of directors and chief executive officer of the company. Li Lin founded firecoin group in 2013 and is currently its chairman and CEO. In the beginning of 2019, Huo yuan disclosed that in 2018, the handling fee income alone was as high as 3.5 billion yuan, and the annual net profit of the company might reach 3 billion yuan.
“Going to sea” does not mean that these digital asset trading platforms cannot provide services to Chinese users. In fact, through the OTC market (OTC), exchange platforms such as okex still carry out active virtual currency trading of French currency. Users can use RMB to directly purchase usdt stable currency, mainstream digital currency such as BTC, ETH, EOS, or platform currency of the trading platform itself through bank card, third-party payment and transfer, etc And then use these digital currencies to participate in other kinds of digital currency transactions.
However, due to the lack of strict KYC (know your users) and anti money laundering procedures, such OTC transactions are easily involved in money laundering. Previously, some OTC platforms of virtual currency exchanges have shown signs of tightening up, including the need for buyers to provide flow screenshots of payment accounts within a week to assist identity and account verification, and some platforms directly stopped providing services to users in China, and asked users to put the virtual currency of the platform into their digital wallets.