A cryptocurrency broker surprised its clients early this Monday morning (29) by announcing that it had suspended withdrawals due to alleged cooperation with the police.
Being a centralized cryptocurrency exchange based in the British Virgin Islands, the news quickly resonated with its customers.
Market data estimates that the platform has more than 2 million customers around the world, who are now unable to withdraw funds.
To justify the blockade, the broker stated it was only cooperating with authorities, but did not clarify which country the alleged investigation originated from.
What does the brokerage say when blocking cryptocurrency withdrawals for clients?
In a note to the market, the BKEX brokerage stated that it had found evidence of clients committing money laundering crimes. For example, a police investigation would have started on the platform and brought the current looting to a halt.
According to the explanation, the broker is doing its best to recover withdrawals as soon as possible. However, until the morning of this Monday, the looting was still halted.
“Recently, platform users’ funds have been involved in ‘money laundering’ and BKEX is currently working with the police to collect evidence, for which we will suspend withdrawals to cooperate with the work. The BKEX team will fully cooperate with the regulatory investigation and do their best to restore normal exchange operations.”
“Thank you for your support and understanding, we put client interests first,” the brokerage told investors with stalled withdrawals
In stating that it is actively cooperating with authorities to resolve issues, BKEX said it expects maximum protection of its clients’ rights.
In addition, the broker promises to keep investors informed about the next steps of the alleged investigation, of which no public details are known. As a result, the exchange stated that the brokerage support is available to all clients who want further clarification.
Finally, the cryptocurrency brokerage that blocked investor withdrawals this Monday stated that it puts the best interests of its users first.
“Finally, thank you again for your support and understanding of BKEX. We will continue to work hard to get the plant back to normal operation and to always put the interests of our users first.”
#BKEX Notice about suspension of recordings
– Details: https://t.co/gDh6Z3bg9a pic.twitter.com/EMTEuU2DDO
— BKEX (@BKEXGlobal) May 29, 2023
When a centralized cryptocurrency exchange blocks withdrawals, the market does indeed issue a trade alert.
That’s because in recent years, many brokers have ended support for clients by surprise, and many have never seen their equity again.
In the case of BKEX, it is not yet clear when the platform will resume its activities, but the entire market is closely following the matter.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
