Did OKEX cause the Bitcoin DUMP? Co-founder rumored to be arrested

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Did OKEX cause the Bitcoin DUMP? Co-founder rumored to be arrested. Withdraws on OKEX has been suspended - cause some fear in the market. No hacks have occurred - so perhaps this is a personal issue? ...

Did OKEX cause the Bitcoin DUMP? Co-founder rumored to be arrested. Withdraws on OKEX has been suspended - cause some fear in the market. No hacks have occurred - so perhaps this is a personal issue? https://podcasts.apple.com/podcast/boxcast/id1490037766?l=en Spotify: https://open.spotify.com/show/5iHcN9jfQwpKTbT37tS0zQ ●▬▬▬▬▬▬▬Recommendations▬▬▬▬▬▬▬● 🍖Buy & Sell Crypto: https://join.swissborg.com/r/michaeOQZM 🔎Crypto Prices: https://www.coingecko.com/ 🔒Hardware Wallet: http://boxmining.co/ledger 👍🏻Brave Browser: http://boxmining.co/brave 📲Binance Exchange : http://boxmining.co/binance ●▬▬▬▬▬▬▬▬▬▬Community▬▬▬▬▬▬▬▬▬● Boxmining Official Website: https://www.boxmining.com/ Telegram Discussion Group: Currently private Telegram Announcements: https://t.me/boxminingChannel Facebook Community: https://www.facebook.com/groups/CryptoSpartans/ ●▬▬▬▬▬▬▬▬▬▬▬Social▬▬▬▬▬▬▬▬▬▬▬● Instagram: https://www.instagram.com/boxmining/ Twitter: https://twitter.com/boxmining Facebook: https://www.facebook.com/boxmining Steemit: https://steemit.com/@boxmining ●▬▬▬▬▬▬▬▬▬▬Disclaimer▬▬▬▬▬▬▬▬● I'm not a professional financial adviser and you should always do your own research. I may hold the cryptocurrencies talked about in the video.

AI Analysis

This video dives into the sudden Bitcoin dump and the circulating rumors around OKX, a major cryptocurrency exchange. The core of the issue is OKX's unexpected suspension of withdrawals, which quickly sent ripples of fear and speculation across the market. While the dump itself wasn't catastrophic, it definitely warranted a deeper look into why one of crypto's biggest exchanges was suddenly unable to process withdrawals.

Here's a breakdown of what happened and what it all means:

* The Bitcoin Dump's Immediate Cause: Bitcoin saw a sudden drop from around $11,500 to $11,200. This relatively small, but noticeable, dip and the broader market hit for altcoins, was directly linked to OKX freezing its withdrawals. The market reacted swiftly to the uncertainty.
* OKX's Vague Announcement: OKX confirmed the suspension of withdrawals with a very vague official statement. They stated that "one of our private key holders is currently cooperating with the public security bureau and investigations were required." This key holder was out of touch, meaning "the associated authorization could not be completed," effectively preventing access to the funds needed for withdrawals. Essentially, one super important person had the keys to a lot of money on the exchange, and they were unreachable due to an investigation.
* The "Private Key Holder" Revelation: This private key holder is so crucial that they likely hold the keys to potentially millions, or even billions, of dollars worth of user funds on the exchange. The presenter speculates this individual could hold up to 100% of all OKX deposits, highlighting the immense centralization risk in such an setup.
* Star Xu Rumors: Speculation from Caixin, a Chinese financial news outlet, strongly suggests the person in question is Star Xu, the co-founder of OKX. This is a massive rumor, but it quickly gained traction.
* Evidence Supporting the Star Xu Rumor: Several pieces of anecdotal evidence point towards Star Xu:
* He's been unusually quiet on social media recently.
* His Weibo (Chinese Twitter) profile was recently deleted, with all his previous posts gone.
* Reports from Chinese social media claim he's been "taken" for at least a week and hasn't appeared in work groups for days.
* There was even a rather amusing but telling rumor that his WeChat Health data showed no activity (no walking/exercising) for days, further suggesting his absence. The presenter found this almost funny because it shows how little official information is available, forcing people to resort to such bizarre detective work.
* No Hack, Funds Are Safe (Supposedly): It's crucial to understand that this is not a hack. No funds were stolen, and the private key holder (likely Star Xu) still possesses the keys. The problem is a lack of communication or ability to authorize transactions. The presenter emphasizes this point, trying to curb widespread panic (FUD).
* OKX CEO's "Personal Issue" Statement: Jay Hao, the current CEO of OKX, released a statement claiming that "all operations on OKX except for digital currency asset withdrawals remain unaffected," and "all your funds and assets are saved." Crucially, he referred to the investigation as concerning "a certain private key holder's personal issue only." The presenter finds this phrase "personal issue" particularly interesting and vague, leaving a lot of room for speculation.
* Historical Context and China's Stance on Crypto: The presenter reminds us that China has a history of trying to control or stop cryptocurrency use. In 2017, OKX and Huobi (another major exchange) were effectively kicked out of China, but crypto survived that FUD. However, China has recently shown more positive signs towards crypto, with state TV even highlighting Ethereum as a top-performing asset. This incident, therefore, sends a mixed message: why praise crypto publicly and then arrest a key figure in a major exchange?
* Why It's Still Negative (Mixed Messages): The main reason this incident is viewed negatively, even without a hack, is the "mixed message" it sends regarding China's stance on crypto. People are wondering which direction the Chinese government is truly heading. While the presenter doesn't believe it will lead to an outright ban again ("how many times can a boy cry wolf?"), it does create uncertainty and might delay positive regulatory announcements.
* Other Rumors: There were also rumors that the situation relates to 800 transactions that circumvented China's cross-border rules. This is pure speculation, but it highlights the potential for regulatory enforcement against specific, questionable transactions.
* Presenter's Personal Take and Cautious Approach: The presenter advises against over-speculation, emphasizing that we've "dealt with this many times before" regarding China FUD. He personally uses OKX and Huobi but only for "small amounts" and "in the legal sense." He doesn't see this as a "total disaster" but rather a "disappointing" development that creates a slight impact due to market uncertainty, not stolen funds. He hopes the situation resolves promptly and that Star Xu is well.
* Impact on Decentralized Exchanges (DEXs): A significant takeaway is how this incident highlights the advantages of decentralized exchanges. Because a founder or single individual cannot control funds on a DEX, such a situation (where a key holder's absence prevents withdrawals) would never occur. The presenter notes that Uniswap, a popular DEX, saw a price surge in response, as people realized the inherent security benefit of holding your own keys on a DEX versus trusting a centralized exchange.
* Actionable Takeaways: The main takeaway is not to panic, but to remain cautious. The lack of official information forces reliance on rumors, but the core fact is that funds are not stolen. This situation underscores the importance of self-custody and the growing appeal of decentralized platforms where you always control your assets.

Transcript

expx suspensions of withdrawals lead to this current dump that we're seeing on the markets right now so just very quickly overall i mean it's pretty clear all right like giant red arrow that took bitcoin down from 1100 11500 to 11200 all right so it's not that bad it's not too detrimental it's not too much but i think it warrants a lot of explaining and a lot of kind of descriptions before um a lot of people go crazy about this so you can definitely see that trend going on like every single cry...

expx suspensions of withdrawals lead to this current dump that we're seeing on the markets right now so just very quickly overall i mean it's pretty clear all right like giant red arrow that took bitcoin down from 1100 11500 to 11200 all right so it's not that bad it's not too detrimental it's not too much but i think it warrants a lot of explaining and a lot of kind of descriptions before um a lot of people go crazy about this so you can definitely see that trend going on like every single cryptocurrency is taking a quite a big hit uh across the board so why why why why why why well it 100 has to do with okx so they froze their withdrawals so that's currently known so far like they've announced that and we kind of covered this in the live stream it was it's kind of it is still kind of a um developing situation where they were very vague about it too so it's a situation where they definitely confirmed that they were they decreased the withdrawals but let's see um i'm gonna just show you the guys there so if you guys didn't see that so they said dear value customers one of our private key holders is currently cooperating with the public security bureau and investigations were required and we have been out of touch with the current concern private key holder as such the associated authorization could not be completed basically they don't have access to the funds basically this person is so important this key holder is so important that this person holds the funds to a lot of people who have funds on the exchange so pursuant to 8.1 service change interruption service on terms of service okx may change the service or may also interrupt suspend or terminate service at any time with or without prior notice in order to act with the best interest of our customers and the long-time customer service we have just decided to suspend withdrawals so this is the kind of the flood on the market now i did promise you guys i'll update you when developments came so this is the case right now so this article was published roughly around an hour ago so i'm a little bit late there just just just a little tiny bit late so this is a speculation from caixin right so caixin is one of the finance news outlets in china and they talk about this and they talk about the rumors that the person in question so this person question i mean they intentionally left it vague right one of our concern with the private key holder who is this private key holder right this guy who has so much power in okx and obviously very very high senior position because otherwise they wouldn't have everyone's funds right this private key very likely holds everyone's funds on exchange so it could be millions and millions of dollars for this one individual right in fact maybe billions right though like we don't know how much he holds but very likely he couldn't can hold up to 100 of all okx deposits right that's the insanity there so this guy um is gone and the speculation is that this person is star uh that really sucks all right so star shu is the co-founder he's been very quiet recently like um you know he's been pretty quiet on social media and in fact recently we just saw just now that his recent social media profile on weibo which is a chinese twitter has been deleted um so not only is he quiet but this is star shu this is a screenshot of star shu's um profile on weibo so weibo is chinese twitter and everything that he says is gone all right um the article fills in a little bit more so the suspicion here is that he's been gone for more than a week so i'll put the english one up here um this is the google translate for english so you can do google google translate for english and i just find this easier to reference um here but um one of them said that shu uh shu minxing um so star um has been taken at least a week ago and has not appeared in a group work group for many days um yeah that's interesting so very interesting um there's a few other outlets as well so just before this fud all hits right i mean i think before people start freaking out um there's no hack on okx right so no funds were stolen star obviously still has the keys and star because he's cooperating with police maybe there's limitations of what communications you can do with the outside so very intentionally i mean this article on okx support is being you know kept very vague they said they've been out of touch right so you know who knows like what's happening in there but um he is cooperating right and none of the fires are stolen and there has been no um we dealt with china for before right so there's kind of like you know there's been quite a few numerous reports also on you know chinese social media saying you know just don't worry about this guys we've been through this again and again and i totally and 100 agree with that because you know china's been stopping or trying to stop the use of cryptocurrencies for a while and i kind of explained this in the previous stream but i'll do it again but in the previous times china kicked okx out of china right okx has a big footprint because of how many chinese users a used to have right it used to be one of the biggest exchanges so huobi and okx were the two kind of top fiat gateways to crypto in china they had a huge user base huge number of deposits and they were literally kicked out in 2017 and we dealt through that flood already like it's not gonna kill crypto all right i think that's important to point out here that you know this this flood impacts a very small amount and um you know uh we've seen with j so there's a comment also from um j how uh j how the current ceo the current kind of face of uh of okx right he's the ceo of okx um and he says that all operations on okx except for digital currency asset withdrawals remain unaffected all your funds and assets are saved the investigation contains a certain private key holders personal issue only personal issue interesting um that's an interesting phrase in there and further announcements will be made so this is where you gotta be you know kind of figuring out um and kind of sussing out and connecting the dots i mean because so little information has been revealed um yet again there's a lot of room for speculation and there's a lot of rumors um at this current point now why is this overall regarded as negative even if it's a personal issue is because people are wondering what's going to happen to the status of crypto in china recently there has been a lot of positive news on the chinese front right they've actually been saying you know hey you'll guess what guys ethereum is one of the best performing assets of 2020 so this was on national tv so this was a conscious decision by the government to put out this sort of news so they're very positive about crypto but then if you're so positive about crypto why go and arrest star or a hot figure in okx and cause this type of fun and this is why there is what in the market just why there's a little bit of fear like where which direction is the chinese government going to go and i feel like this is where over speculation won't really lead us to good results i feel like i feel like we dealt with this many times before and we just have to watch and see how the situation plays out so on the cautious side for me personally like um i do use both okx and huobi um kind of not really um small amounts small amounts small amounts but um only in the legal sense right so yeah that's the kind of situation where um can this go like how long can this go on for and how long can this go as this becomes the uncertainty and what caused this mini dump that we saw i don't really see china come coming out and over outright saying banning bitcoin again because they've already done that you know like how many times can the can a boy cry wolf right um to a certain point you know how how bad is bitcoin well totally right so i feel like it's not negative news per se just probably a delay on the positive news announcement because i think a lot of people were expecting some positive changes coming to china to allow crypto to come back in some form or the other now there have been other rumors so one of the interesting rumors has been that this regards 800 transactions that took place in okx that with okx customers which did circumvent cross-border rules in china so this might be to do with regulation taking on certain customers they shouldn't have possible all right possible yet again this is rumors at a certain point and you know sometimes rumors work out sometimes they don't and it's i think i wouldn't push the speculation so far and this is in many ways why i'm trying to do this short video right now where i tell you guys what is known and what is established and i want to stop all that fear and a flood all progressing in the market i mean i think that's unnecessary and i saw there were quite a few people pushing this so it could be related to certain transactions that the government deemed questionable and this is why star is held in questioning it was kind of interesting like i mean it does seem to point very much that this is star um you know who else has such a high um um status in in okx to have all the keys right and there was this kind of uh i saw this tweet from mafie i'm not sure if he deleted it just now um yeah so yeah this is the cn wires is uh star was arrested a week ago apparently the source adds this and apparently someone has this wechat health uh let me see if it's deleted i'm actually just curious um yeah this one so apparently someone had stars star as a friend on wechat health or whatnot and he's apparently not um exercising he's not walking for the past few days right uh so yet again that's that kind of points towards star not you know not saying anything here i think i think and i want to be very sensitive here touchy feeling sensitive i mean a lot of people probably would be like oh why are you smiling making a joke about this i think i think i'm joking mostly because we have to get our information from wechat health like because so little information is actually released by official sources that we kind of have to resort to people's wechat and wechat health to figure out what's going on but yeah it seems like that i don't think he's like gone gone i think the you know china has this way of detaining people and then potentially not allowing them to speak or maybe he chose this chooses not to speak out i think this is also the case with offer hayes after the whole bitmax um bitmex situation offer hayes stopped speaking because if you start speaking you might incriminate yourself right so this is a situation where you know they just said no um yeah that's pretty much it i definitely see this as a bigger problem like i said in my previous um stream to talk about this i saw that you know pursuant to clause 8.1 the service change interruption terms of service um i'm surprised that they put this here um to make it you know kind of in the middle of the post to say yo you know guess what we can stop the service and uh we previously found that the service means every service provided okay by lkx right so that means um spot exchange futures exchange every single service that they have could be suspended and terminated like that um i try to do a little bit more digging and uh to figure out what's happening but most of my sources have said that the contact with okx has pretty much stopped like people have not been replying so yet again it might be a situation where they're trying to be very cautious at this current point so overall conclusion so why it affects the market it's not just because okx no no funds are stolen and it just affects the overall tone at which the government may take a stance on crypto i think that's kind of why the there is an impact on market i mean after all withdrawals from okx because the funds are still there you know star hasn't run off anything he hasn't run to india and got killed or something like that you know uh i don't hate saying this stuff like anyways but you know he's not gone he's just with authorities and he's cooperating with authorities and i don't see that there's any problem with cooperating with authorities right that's pretty much the legal thing to do at this point so i don't think that there's that's a big problem um but yet again the slight impact is that it seems to send a mixed message to how positive china is looking at crypto right and that that's where kind of the fuck comes in i think it's not a panic flood it's just like oh that's disappointing you know we thought china would maybe giving the reverse message sometimes so that's my two cents and that's why the impact is so small it's not like oh my god all of a sudden things are going crazy and um you know yeah it's not so that's my two cents um nick mayo and angelo wang's uh nick miles is binance next question mark who knows right at this point i know that um cz doesn't enter china i think i don't i don't think there was a single time i've ever seen him in china um yeah i don't think uh you know these ceos would be at a problem um what b said they're fine like there there was an official message posted by huobi like um and they said they're fine for now um i'm gonna play it cautious like it again you know if it can't then you know i can't right and that's pretty much it so anyways guys that's pretty much it for this mini update i'll update you guys as um it goes um binky wolf bill wolf says appreciate your sensitivity people speculate because info is needed and absolutely there are so many blanks right now that um i mean people's imaginations can take over sometimes but so far i'm not too concerned i mean we've dealt with all this china flood before um it's not the biggest deal i mean like i hope everything's well i hope star as well um i really do hope so and i hope they can resolve this situation promptly and you know it doesn't resort to more exchanges closing so we'll see how it goes um we'll keep you updated throughout the week um if you guys want to read up on that we have an updated article uh kind of summarizing the situation on boxmoney.com so check out boxmoney.com i mean throw that here or not okay it's probably not up it's it's coming soon it's coming soon on boxmoney.com so yeah so that that article is coming up just about the whole overall situation and just before we go as well i'm just gonna throw out the newsletter out there as well if you guys want to be updated on what's happening with the recent news as well um well check out boxmoney.com newsletter um that's a great place to get updated it comes out every week we have quite a few updates coming on and it will be cool and uh let's just look at the comments i think um yeah skills that pisses thoughts on fog coin quick summary i mean fog coin had to have a big launch but at the same time the evaluation is very high right so i think the tech is there it's really cool but yet again is this the right entry point probably for me it's not um so we covered a lot of stuff earlier so um a lot of questions going on i probably won't repeat it i guess i will encourage you guys to check out the earlier live stream today this is my second time doing a live stream i would do something special as well i mean we have a lot of european viewers so what we're gonna do today and for this very special just for you guys right just for you guys i'm gonna open up the telegram group so if you guys want to join the telegram group i know a lot of europeans you guys are concerned etc uh we're gonna open that up for just everyone here so this is your the cool notification squad right people who came on this live stream you guys have the notification bell on that's most likely why you're here so guys smash up those likes i'm gonna open the telegram group just for you guys up especially because um we have a lot of requests in the european time zone to say you know you know it was too early for them and now this is a more appropriate time so anyways this is for you for everyone in european time zone um jump on telegram i'm gonna leave it open for 10 minutes jump on have a discussion uh talk about your concerns and we'll try to cover this tomorrow as well um i actually have a really cool call very soon with persistence as well so i'm doing a lot of calls with different projects recently just to find out what's happening some of them recorded sometimes not um it's all a lot of fun and we'll also talk a little bit about decentralized exchanges soon as well i think this is actually really highlights this whole situation really highlights something where you know this will never happen on a decentralized exchange like where a certain founder can take or possess keys to all of the funds or a large portion of the funds to a point where withdrawals can no longer be made right i mean it's very very clear that uh whoever got arrested i mean at this point basically has all the funds so that's why okay cannot make withdrawals at this current point and have to push this out to the public i mean this has been going on for apparently a week so they've been trying to cover it for a week but you know now it comes out so it's not really new news it's really surfacing of old news um and yeah that's interesting i guess so well that's kind of the information coming out so this will never happen on decentralized exchange because you hold the funds and that makes such a big difference like you know when you are on a decentralized exchange and you see those numbers those numbers are held by exchange operators by very high level individuals within that exchange and if something happens you know that's unfortunate so that's why all of a sudden you know like people are saying uni went up right all of a sudden uniswap pushed really high today because of kind of the response that well yeah there is now a reason to not have decentralized exchanges so you can see that like there's like the immediate response of uniswap is to go the other direction instead of down and it went up right like i think the jerk knee jerk reaction as it went down and then someone realized oh really this is really good for decentralized exchanges bam huge buy order boom everything is okay um there so there we go um yeah pretty much that's it um where do i click to join um so the private group um it's sent to chat right now so you guys have 10 minutes um enjoy enjoy thank you guys for watching today i hope you guys can check out the newsletter subscribe to that check out boxmining.com article coming out very very soon and we'll keep you guys updated as news comes out on the whole situation so anyways guys thank you guys so much for watching see you in well the next scheduled stream is monday so yeah monday or before that if something new happens so yeah cheers guys you