19:53OKEx CEO Jay Hao Talks About Recent Withdrawal Suspension and Safety of Crypto Assets on the Platform
The leading crypto spot and derivatives exchange OKEx recently announced that crypto withdrawal service will be restored on the platform by November 27, after more than a month of suspension. The news has come as a relief to its users.
We reached out to the CEO of OKEx, Jay Hao, and asked a few questions about the recent events and their effect on OKEx and its customers.
A: This has been a challenging time for all of us but especially for our users. Whilst they have never had to worry about the safety of their assets as we have repeatedly reassured them that all funds are safe, they have had to deal with uncertainty as we were unable to give them an exact date when withdrawals would be open. Uncertainty can cause inconvenience and stress and we can only apologize for this. We are so very thankful to our users for their continued support and will grow stronger and better together with them.
A: All other operations on the OKEx exchange remained unaffected. We continued to maintain a business as normal approach throughout the suspension period while working on enhancing OKEx’s risk management system to safeguard user assets, supporting the Bitcoin Cash hard fork, listing the new asset BCHA, and airdropping tokens into Bitcoin Cash holders wallets.
We have seen an understandable decrease in trading activity on the exchange. However, we have also received much support and encouragement from our users not only through messages but also when we look at the data from leading platforms such as skew. Despite the withdrawal pause, OKEx held strong among the top bitcoin futures exchanges and is still leading the pack as the number-one derivatives exchange in terms of OI on Bitcoin futures.
We have also continued to forge ahead with new projects to list and in talks with new companies to partner with to build out the OKB ecosystem further and enhance the user experience on our platform. We know that many customers have had their trust in us affected and we sincerely apologize for this. Our work from here on is clear: we will uphold our commitment to winning back user trust and ensuring that OKEx remains their platform of choice for investing and trading digital assets.
A: The reason for the suspension of withdrawals was because one of our private key holders was temporarily unable to authorize transactions. We have a very robust backup mechanism in place for private key holders that makes sure the activation of the backup private key can still be triggered in the event of long-term incapacitation, such as death or memory loss. However, we failed to include other important scenarios, such as private key holders becoming unreachable due to unforeseen circumstances, in our contingency plan.
Clearly, we cannot have a situation where this occurs again and we are now making it our full priority to upgrade and improve our internal processes. It has been a very challenging period but we have learned some very valuable lessons. Most importantly, all user assets have been kept safe this entire period, which has always been our number-one priority at OKEx.
A: 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. But it also highlighted the strength of our infrastructure and security in that we were able to safeguard all user assets as well as continue to maintain operations on all other functions of the exchange.
Outside of OKEx, the incident highlighted the cryptocurrency market’s maturity reflected in the price of Bitcoin and other major assets and their resilience to the news. We also found out how supportive and loyal OKEx customers are and how high confidence has remained in our platform. Not only will we be thanking them with generous rewards programs upon resuming withdrawals but we also hope to restore any loss of trust throughout this time.
We will also be continuing to enhance the user experience, roll out new products and features, and listen to customer feedback. Apart from being CEO of OKEx, I have another very important job at the exchange which is Chief Customer Service Officer. I regularly speak to customers one-on-one to identify their pain points, listen to their suggestions, and accelerate their ideas and needs through our product development process.
In order to ensure customers feel that all their concerns are addressed, I will be hosting a live AMA in our Telegram group ahead of the withdrawals this week, in which they can ask me any questions they like about the incident, user security, the resuming of withdrawals, and the rewards programs we are offering – or about anything else for that matter!
Prior to withdrawals reopening, our team is conducting additional security checks so that we can ensure the safety of resuming normal operations of our hot wallet system. We have garnered years of experience in safely operating digital wallets, assets, and transactions with no major security incidents and this has always been our number-one priority at OKEx.
We invest significant resources in offering some of the most robust security in the industry through a combination of cold and hot wallet storage, and a state-of-the-art risk management system that uses various online and semi-offline protocols to flag up suspicious activity and prevent any large malicious withdrawals. You can find more details about the specifics of our hot wallet system here.
In addition to that, OKEx has always insisted on maintaining 100% reserves ever since its inception. This means that all withdrawals are guaranteed and 100% of user funds can be withdrawn without any restrictions after withdrawals are reopened.
A: We are fully prepared for any surges in withdrawals as I mentioned earlier. We maintain 100% of reserves and users can withdraw their funds without restrictions. From the continued support we have seen, consistent trading activity, and by maintaining a complete service across the rest of the platform, we believe that confidence remains high in OKEx. We are also making sure that we compensate our loyal users with our newly rolled out reward campaign. However, if we do experience significant withdrawals, we will work hard to restore trust to ensure that OKEx becomes traders’ platform of choice once again.
The reward campaign and initiatives that we are offering as withdrawals reopen are significant and we hope that our users will take advantage of them and accept them as our way of thanks and apology over the incident. We also have many exciting initiatives in the pipeline that will ensure that OKEx maintains its place as a market leader. For more details of the reward campaign, please refer to the announcement here.
|Total comments: 0|
|Buying the Bitcoin Dip: MicroStrategy Scoops $10M Worth of BTC Following $7K Daily Crash (0)|
|MicroStrategy buys the Bitcoin dip worth $10 million (0)|
|Bitcoin is unlikely to replace gold as a risk diversifier – DBS Bank (0)|
|Demand for Bitcoin Miners Pressures Chip Makers Amid Global Shortage (0)|
|OKCoin to Integrate Bitcoin’s Lightning Network in Q1 (0)|
|Bitcoin's biggest mining pool may be behind the BTC price drop, but buyers stepped in (0)|
|Grayscale Acquires $1,276,147,151 in Bitcoin in Single Week (0)|
|Hive Blockchain Buys 6,400 Bitcoin Miners From Canaan, Capacity Reaches 1,229 PH/s (0)|
|Biden names new SEC and CFTC administration – curse or blessing for Bitcoin? (0)|
|Learn the basics of Bitcoin with some help from a pro (0)|