BKEX Takes Action: Suspends Withdrawals to Support Police Probe

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Key takeaways:

  • BKEX halted withdrawals after money was laundered via its platform.
  • Throughout the investigation, the exchange encourages honest and prompt communication.

According to a May 29 announcement from cryptocurrency exchange BKEX, withdrawals were banned after money on the site was utilized for money laundering.

BKEX was established in 2018 and had British Virgin Islands registration. BKEX declared that money laundering was taking place with the monies of its users and added that it was working with law authorities to compile evidence. As a result, the exchange temporarily stopped allowing withdrawals. Added was:

“BKEX team will fully cooperate with the regulatory investigation and do its best to restore the normal operation of the exchange. The team will actively work with the relevant authorities to resolve the current issues faced to ensure that the rights of our users are protected to the greatest extent possible.”

Throughout the course of the investigation, the exchange is dedicated to encouraging honest and prompt communication. When users encountered new issues, the corporation advised them to contact customer care. However, this unexpected stoppage has drawn a flood of complaints from customers.

Several users have criticized BKEX’s move and questioned why the exchange would halt withdrawals for everyone as a result of the conduct of a few. Another user asked about the platform’s financial stability in light of recent difficulties faced by centralized competitor exchanges.

BKEX’s angel tried to calm angry customers by assuring them that the service interruption was just brief and imploring them to be patient.

The money laundering investigation at BKEX comes after a local Nexo branch was raided by Bulgarian police authorities working with international agents several months ago. A total of 15 offices of the company were searched during the operation.

According to the reports, authorities have started an international investigation into the exchange to examine claims that it committed financial crimes, had problems with its anti-money laundering procedures, and permitted transactions that violated international sanctions against Russia.

After FTX’s demise last year, centralized exchanges have been scrutinized. After five years of service, Hotbit has announced that its business operations will be suspended as of May 22. The decision was made in response to deteriorating business conditions, which included decreased cash flow, shifting cryptocurrency sentiment, and more onerous regulatory requirements.

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