The Tough Situation of Mainstream Cryptocurrency Exchanges the Facing with Security Issues


Hong Kong, China -- (ReleaseWire) -- 11/17/2020 --The digital currency exchange is the "distribution center" of digital currency transactions, providing an online platform for the trading of digital currency. The digital currency exchanges at the head are the profit core of the entire ecosystem. The main sources of income of digital currency exchanges include token listing fees, two-way transaction fees, ICO consulting service fees, and of course, early incubation services and fund investment to obtain more benefits. In the entire ecology, digital currency exchanges are considered to be lying and making money.

However, although the digital currency exchange has a boundless reputation, it also faces some major risks, including factors such as supervision and security technology iteration.

Huobi Global and OKEX are all trading platforms originating in China, and their trading volume ranks among the top ten in the world. However, in September 2017, China's regulatory policies caused these exchanges to cease their business in China, and various platforms used overseas and over-the-counter transactions to transfer business.

However, it was these two exchanges that shocked the digital currency circle in the fall of 2020. On October 16, an announcement on the OKEX platform, one of the current leading cryptocurrency platforms, disrupted the entire market's trading sentiment. The general content of the announcement is that Xu Mingxing, the owner of the private key of cold wallet and the founder of OKEx, could not be contacted due to the investigation by the public security organs. Therefore, the OKEX platform has suspended the withdrawal of coins. On the day of the suspension of the withdrawal, according to an authoritative media report, two sources close to OKEx said that it was OKEx founder Xu Mingxing who cooperated with the public security agency in the incident. Since then, there have been media reports that Xu Mingxing was taken away by the police or that OKEx may be involved in cross-border money laundering. In this regard, a reporter from Beijing Commercial Daily asked OK Chain Group for verification. The latter did not accept the interview head-on, and said that OK Chain Group and the OKEx trading platform have no business intersection, and there are currently a lot of false news on the Internet. Please refer to the announcement of the OK Chain listed company.

At 20 o'clock in the evening on October 18, a reporter from Beijing Commercial Daily waited for the official confirmation of the OK Chain listed company. The latter stated that Xu Mingxing is currently under investigation by the Chinese public security authorities and the company has not yet contacted him to verify the information. In fact, reporters from Beijing Commercial Daily tried to interview Xu Mingxing himself on many occasions, but did not receive a response for a long time.

In addition to OK Chain Group, the CEO of OKEx platform also responded. The person stated on Weibo that "please rest assured that the company, business, and platform operations will not be affected. It is a personal issue of the private key manager, and the withdrawal will be temporarily suspended. We will announce the follow-up arrangements as soon as possible. Please refer to the announcement information." Although the CEO of the trading platform put the remarks to the top on his personal Weibo, he still couldn't calm the panic of countless OKEx trading users. After October 16, the price of OKB under OKEx showed a large number of selling orders, and the price plummeted rapidly during the session, once falling by more than 17%. In addition, Bitcoin, the mainstream currency of virtual tokens, fell by more than 3% at one time, and most virtual token currencies fell to varying degrees. As of 20:40 on October 18, OKB quoted 4.35 US dollars on the OKEx trading platform, a decrease of 6.37%.

When the OKEx withdrawal time was still unresolved until today, what was even more incredible was that another leading exchange, Huobi Global, was also exposed to negative news, that is, the second master of Huobi Global was taken away for investigation.

The "No. 2" figure of Huobi Global is actually Huobi COO Zhu Jiawei. Although the first time the negative news came out, Huobi officials immediately responded: Everything is normal for Huobi, and the safety of user assets is the first priority.

Since the news came out, the Huobi global trading platform has also set off a vigorous "coin withdrawal wave". According to relevant statistics, the Huobi Exchange transferred a total of 100 million USDT in 10 transactions (each 10 million USDT) within more than half an hour from 7:30 to 8:30. As a result, Huobi Global's platform token HT fell in response, and dropped to 3.58U at 8.30pm on November 2nd.

In the face of the fanatical withdrawal of coins, Huobi global's operations are normal and orderly. For large withdrawals worth hundreds of thousands of USDT, Huobi Global also withdraws as soon as it is mentioned, and it will arrive in 2 minutes. The transfer of 100 million USDT funds that caused a sensation earlier also gradually returned. Huobi Global officials also refuted the rumors that the normal USDT multi-chain liquidity adjustment, and has repeatedly reiterated that users' asset safe transactions and deposits and withdrawals are operating normally. In general, unlike OKEx Xu Mingxing, Huobi is more appropriate in terms of the importance of the incident and the speed of response.

As Huobi's leading OTC platform, bank cards are frozen almost every day. Since September, a new wave of frozen cards, known as the strongest in history, has struck; in October, the Ministry of Public Security expressed its position to carry out the "card breaking" operation. The cryptocurrency industry will usher in a new wave of cruel reshuffle.

Since the beginning of this year, central banks of various countries have increased their anti-money laundering and anti-fraud efforts, and many OTC trading platforms for encrypted currencies have been investigated by local financial bureaus and public security departments. As a relatively large OTC platform, Huobi Global is full of black money. Many criminals call Huobi a holy place for money laundering, which has been investigated by relevant departments. This time, Xu Mingxing triggered the black swan on suspicion of cross-border money laundering, which shows that Huobi's risk factor is also extremely high.

Nowadays, among the numerous exchanges that have emerged in the currency circle, from which dimensions should we distinguish in order to find a stable, reliable, and safe digital currency exchange?

First, it must comply with supervision. Many current digital currency exchanges are in a gray area, because both blockchain technology and digital currency economy are in the early stages. But in the future, digital currency exchanges must be under strict regulatory measures and, like some other business practices, seek development within the rules. Only legally compliant exchanges can continue to survive. Today, Exchange is the first compliant virtual asset trading platform in Europe.

Second, security. Security has always been a measure of the quality of an exchange, and it is also a decisive factor in determining whether the exchange can survive. If an exchange cannot even guarantee the security of user assets, it is equivalent to the user's currency stored on the exchange. Due to illegal acts such as hacking or guarding and stealing, it is possible to change the name to someone else in minutes. For exchanges that cannot even guarantee the principal, no matter how low the transaction fee is, and no matter how fast the matching speed is, it is just a joke. No user will trade on this kind of exchange. The exchange has a good record and no hacking attacks have been reported since the beginning of the transaction in 2013. This makes it attractive to both retail traders and institutional traders.

Third, credit endorsement. When users choose an exchange, in fact, to a large extent, they choose the strength of the institution that they endorse. A few self-media people or a few online celebrities randomly set up exchanges, it is really not enough to support the 100% trust of the majority of investment trading users. In the face of huge interests, human nature has never been vulnerable. Nowadays, a lot of various projects and wallets are running away. What do you do if you encounter it as an ordinary investor? The exchange has cooperated with multiple institutional banks in this regard, giving investors a reassurance.

As the oldest qualified among the four major exchanges, it was registered and established in June 2013. At that time, it was not called, but was originally called CHBTC, which is the famous China Bitcoin network, and belongs to the top-level domain name. Moreover, has the reputation of stable and safe operation for seven years, and has never had a safety accident. It is the earliest platform for mainstream currencies such as ETH, EOS, XRP, etc., but it has been quietly making its own products over the years and not making fancy publicity stunts. acts rather restrained, focusing on improving user experience and continuously developing its product system. Now it has formed a rich ecosystem that integrates currency transactions, legal currency transactions, leveraged transactions, wealth management, ZAPP, a social terminal for tens of thousands of hot chats, and supports the issuance of currency red envelopes and other product lines. In terms of financial management, focuses on simplicity and flexibility, focusing on low risks and high returns. Today, has users all over the world, far more than 10 million people. is registered in Samoa (located in the southern part of the Pacific Ocean) and is responsible for digital currency financial management by the Central Bank of Samoa (CBS). This year, has successively obtained the US MSB license and the digital currency payment exemption from the Singapore PSA Financial Authority in order to cater to global compliance. takes user asset safety as its responsibility, and creates a safe and reliable platform environment for users and investors within a compliant and legal system.

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