Bitcoin Exits OKEx Exchange in Droves as Withdrawal Service Reopens

After weeks of uncertainty for OKEx users about the fate of their locked-up funds, the leading Asian crypto exchange finally reopened withdrawal services at 8:00 am UTC on Nov 26. Less than 15 minutes after services resumed, crypto traders moved 2,822 Bitcoin (BTC) off the exchange, according to on-chain data provider CryptoQuant.

Large single-block outflow recorded

CryptoQuant reported that this BTC exodus was the largest single-block outflow to be witnessed in recent times since May 2019. The on-chain data provider tweeted:

“The first OKEx outflow after the withdrawal opening hit 2,822 BTC by the block time frame. It's the year-high in the block time frame.”

The much-anticipated reopening announcement was revealed on Nov 19. It was noted that users could get “unrestricted withdrawal.” The crypto exchange also stated it would launch a loyalty reward campaign to show gratitude to its community members for the inconveniences caused by the withdrawal suspension.

Withdrawal restriction stirred mild selling panic

After OKEx brought to the public eye the suspension of all cryptocurrency withdrawals in mid-October, a mild selling panic was triggered in the crypto markets. For instance, Bitcoin and OKB prices plunged by 3% and 15%, respectively.

This decision was reached following one of its private key holders cooperation with a public security firm in regard to an ongoing “investigation.”

Ki Young Ju, the CryptoQuant CEO, also delved into the huge Bitcoin outflow issue and stated:

“Some whales are trying to leave OKEx, they might change their BTC to another coin for various reasons like faster transactions (change it to XRP for example).”

He added that 83% of the total sum was transferred to non-exchange wallets like custody, signaling a bullish gesture in the long-term. Serving many Chinese retail investors as one of the three largest Chinese crypto exchanges along with Huobi and Binance, OKEx has maintained its innocence in any wrongdoing. 

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