OKEx CEO Says Exchange Updating Procedures to Prevent Repeat of Withdrawal Freeze Issue

Jay Hao, CEO of Malta-based cryptocurrency exchange OKEx, has pledged that his firm has taken steps to ensure that the issue that caused an over five-week freeze of cryptocurrency withdrawals cannot reoccur.

In an ask-me-anything session, a transcript of which was published on Wednesday, Hao said the incident led the exchange “to make several improvements in our internal processes.”

“I think that the incident highlighted several very important points. It exposed some weaknesses in our internal processes, which we are now steadfast in correcting,” he said.

The CEO stressed that user funds had never been in jeopardy and that OKEx maintains backups of the crypto private keys. He didn’t explain why they couldn’t be used in this incident, however.

On Oct. 16, OKEx had been forced to halt withdrawals due to one of the key holders being held by authorities and “cooperating” with an investigation. The exchange managed to resume the service on on Nov. 27, with OKEx saying the keyholder had been released and had not been involved in any wrongdoing or illegal activities.

In the AMA, Hao acknowledged that the issue was harmful for the company and that trading has dropped as a result. He further apologized to customers for the uncertainty, inconvenience and stress caused by the event.