OKEx users will move the crypto out of the exchange if the withdrawals continue

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After a five-week suspension of all user withdrawals, the OKEx cryptocurrency exchange resumed normal services on November 26th at 8:00 a.m. UTC.

After OKEx announced the reopening last week, OKEx announced that it would be launching a compensation and reward program to thank customers for persevering during the disruption.

These programs include Tether (USDT) denominated commission discount cards, a one-time compensation payment based on users’ asset and transaction histories, and a doubling of the asset weight calculation for holders of the exchange’s native token, OKB.

Despite these efforts, today’s data shows that the programs were inadequate to prevent users from withdrawing their funds as they appear to have lost confidence in the exchange.

While withdrawals haven’t been open long, some meaningful initial data is surfacing on social media transaction trackers. Mason Jang, the chief operating officer of Crypto Quant, tweeted:

Further data from CryptoQuant show that “the first OKEx outflow after the opening in the block time frame reached 2,822 BTC”, which is “the year high in the block time frame”:

10-day bitcoin exchange for OKEx. Source: Twitter

Crypto tracking service Whale Alert tracked at least some high quality transactions within an hour of opening withdrawals:

OKEx reportedly suspended withdrawals on October 16 while one of the exchange’s private key holders was collaborating on a regulatory investigation and was unable to approve transactions within the hot wallet system.

The exchange has claimed it was not involved in any illegal activities, although it was reported that its founder, Star Xu, was questioned by police the same week.

The sudden suspension of the redemption in mid-October caused significant volatility in the markets at that point and resulted in a 3% drop in the trading price of Bitcoin (BTC).

With continued outflows from the stock market to other exchanges and purses, the mood in the market is declining. BTC / USD just lost support at USD 17,000 and reported its biggest losses since March.