OKEx Details User Compensation Program After Withdrawal Suspension

OKEx Details User Compensation Program After Withdrawal Suspension 

OKEx, one of the leading cryptocurrency exchanges, has outlined its compensation program for users impacted by its recent withdrawal suspension. The move comes after the exchange announced it would resume withdrawals on or before November 27, following an investigation involving one of its private key holders.

Background on Withdrawal Suspension

OKEx suspended withdrawals in October after a private key holder, believed to be the exchange’s founder Mingxing “Star” Xu, cooperated with authorities in an investigation. The exchange confirmed that neither it nor its private key holder was involved in any illegal activities, paving the way for withdrawal services to resume.

Compensation Plan Details

OKEx aims to make amends through a comprehensive compensation plan, which includes:

1. One-Time Payments:

   • Users will receive payments proportional to their assets and transaction conditions during the withdrawal freeze.
   • OKB, the exchange’s native token, will have double the weight in calculations.

2. Incentive Fund:

   • OKEx will allocate 20% of its total income from futures and perpetual swap transaction fees over the past seven weeks into an incentive fund.
   • The fund will issue one-time payments to affected users based on their asset holdings and trading activity.

3. Commission Rebate Cards:

   • Users who traded over 100,000 USDT before November 23 will receive rebate cards valued between 100 USDT and 1,000 USDT.

4. Weekly Incentives:

   • Starting December 4, OKEx will issue futures and perpetual swap transaction fee incentives every Friday.
   • Users holding OKB will have the option to double their asset weight in calculations.

Safeguarding User Funds

To prevent similar disruptions, OKEx has invested heavily in enhancing its hot and cold wallet systems and risk-management protocols. These improvements aim to identify suspicious activity early and protect user assets from future issues.

Jay Hao, CEO of OKEx, stated:

“The safety of our users’ assets has always been the first and foremost priority. We are now working hard to improve and reinforce our internal security management to prevent future disruptions from occurring.”

Ongoing Operations During Suspension

Despite the withdrawal freeze, OKEx continued supporting its ecosystem:

• It supported the Bitcoin Cash (BCH) hard fork, which resulted in the creation of the BCHA cryptocurrency.
• BCHA was airdropped to BCH holders on the platform.

What’s Next for OKEx Users?

With withdrawals resuming, users can expect:

• Access to their funds after a prolonged suspension.
• Participation in the compensation plan starting December 4.
• Enhanced security measures to ensure uninterrupted operations moving forward.

Conclusion

OKEx’s comprehensive compensation plan reflects its commitment to rebuilding trust with its user base after the withdrawal suspension. By offering incentives, rebate cards, and enhanced security measures, the exchange aims to reassure users and strengthen its position in the cryptocurrency market.

As OKEx resumes normal operations, the exchange’s focus on transparency and security will be critical to maintaining user confidence and long-term success.

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