The crypto sector is buzzing with Bitcoin‘s (BTC) sudden rise today, but a crypto exchange has swiftly drawn negative attention. Established in 2018 and based in the British Virgin Islands, the crypto exchange BKEX has made headlines for the wrong reasons. The exchange is currently cooperating with a serious investigation and announced that it will halt withdrawal operations in this context.
BKEX seems to be in trouble. According to information relayed by Colin Wu and also available on BKEX’s website, it is suspected that the users’ funds on the platform were used in money laundering activities. BKEX stated that they are cooperating with the police in this matter and will also suspend withdrawal transactions to collect evidence. The team is actively cooperating with the relevant authorities to resolve the issue.
BKEX also mentioned in the statement:
We will maintain a transparent and timely communication approach during this process. If you encounter any problems or need assistance during this time, you can get in touch with our customer support team. We will be pleased to offer support and assistance. We will strive to return to the normal operation of the exchange and will always prioritize our users.
Particularly prominent with BTC, ETH, SOL, DYDX, LTC, DOGE, AVAX, MATIC, and DOT trading pairs, BKEX is also known for offering up to 100x leverage. One of BKEX’s products is even known to offer leverage up to 500x. According to CoinMarketCap data, the exchange’s 24-hour trading volume was announced as 443 million dollars. This is certainly a significant volume, and BKEX appears to have a substantial user base.
Despite this situation, BKEX’s own launched BKEX Chain (BKK) did not experience a significant drop in the last 24 hours. On the contrary, BKK’s price started to rise today and gained about 2% in value. This could likely be related to the over 4% increase in the leading cryptocurrency Bitcoin. Crypto exchanges are required to fully comply with regulations in many countries, and requests made by law enforcement can create situations similar to what BKEX is experiencing.