Sun Yuchen rescues victims of the OKEx crisis, is there a solution for withdrawals? TRX surged over 27% at one point.

Since OKEx announced the suspension of withdrawals on October 16, it has been four days and the withdrawal function on OKEx is still not available. Justin Sun, the founder of Tron, stated that in order to take responsibility for TRX holders, the Tron Foundation will open the TRX withdrawal channel on OKEx.

OKEx Suspends Withdrawals

According to previous reports, the well-known cryptocurrency exchange OKEx announced on October 16 that the person in charge of the private key was unreachable due to a public security investigation, leading to a halt in withdrawals from 3:00 pm that day. Since then, OKEx users have been in a state of panic.

Although the CEO of the exchange, Jay Hao, claimed on Twitter yesterday that there have been no outflows of funds since the withdrawal suspension on 10/16 and instead, there have been continuous inflows into OKEx wallets, users on the platform remain unsettled.

No on-chain out-flow from @OKEx has taken place since withdrawals were suspended on 10/16. Instead, there's been continuous on-chain in-flow to OKEx.(source: glassnode)

Your assets are safe. We'll do our best to resume withdrawals ASAP. pic.twitter.com/TKjRnimxQG

— Jay | OKX CEO (@Jay_OKX) October 20, 2020

Since the internal transfer function on the platform has not been blocked, many over-the-counter (OTC) traders on OKEx have proposed solutions such as "you can exit with peace of mind, I will bear the risk" by offering to purchase USDT at a discount (over 10% discount).

Sun Comes Forward to Help

It has been four days since the announcement, and the withdrawal function on OKEx has not yet been resumed. In response to this, Sun Yuchen, founder of the blockchain project Tron, known for his presence in the cryptocurrency field, publicly announced in the early hours of today that in order to take responsibility for the industry and token holders, Tron will enable unlimited 1:1 redemption of TRX on OKEx, allowing token holders whose TRX is stuck on the exchange to get out of the situation.

(1/2)After careful consideration, in order to be responsible for our $TRX token holders, @Tronfoundation and Justin Sun have decided to shoulder their major responsibility in the industry and give users access to the unlimited 1:1 withdrawal of #TRX on @OKEx

— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) October 20, 2020

Specifically, users on the OKEx platform can transfer TRX to a designated exchange account of the Tron Foundation through the internal transfer function and send the relevant information via SMS to the official designated phone number (+8618311026028). Within 12 to 24 hours, the foundation will transfer the TRX to the user's specified address. The Tron Foundation did not specify in the announcement where the external funds to be transferred to users would come from.

Following the announcement, the TRX token surged in price, with the token price on OKEx rising by over 27%, and the price difference with Binance exchange exceeding 6% at one point. As of the writing of this article, the TRX price has declined, and the price difference has significantly narrowed.