Justin Sun, Tron Foundation, and Poloniex out on a Rescue Mission to save TRX and USDT Holders on OKEx in response to Withdrawal SuspensionOctober 21, 2020
The Tron Foundation and Justin Sun, the founder of Tron Blockchain, announced on 20th October plans to help secure the standings of all TRX holders on OKEx. This is in response to the OKEx announcement on the 16th of October to close all cryptocurrency withdrawal on the exchange. One of the private key holders of the Exchange is reportedly cooperating with the public security bureau in investigations. Since then users are not able to withdraw their crypto funds from the exchange except to trade and transfer funds internally. Tron Foundation was the first blockchain to come to the rescue of its community member by offering a way out. The foundation and its founder are shouldering the responsibility by offering a 1:1 withdrawal of TRX on OKEx.
“After careful consideration, in order to be responsible for our TRX token holders, TRON Foundation 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. This decision will take effect as soon as it is announced.”
Community members who wish to withdraw their TRX from the exchange were directed to initiate an internal transfer on the cryptocurrency exchange- OKEx and make contacts with a designated number to confirm the details of the transfer. It was stated that the TRX will be deposited to the mainnet wallets of the owners between 12 to 24hours:
“After this announcement is published, OKEx users can transfer TRX to the designated account in this announcement ([email protected]) via internal transfer and contact our official mobile phone number (+8618311026028). We will send the transferred TRX into the TRX mainnet account specified by the user within 12–24 hours. As the withdrawal will be operated manually, there may be a delay in arrival.”
Though this may have resulted in the TRX price surge over the past few hours, many commenters on Justin Sun’s tweet about the announcement are in disbelieve. There seem to be no reactions from the Reddit and Telegram communities about this news.
A few hours later, Poloniex, in collaboration with Justin Sun, also announced its remedy for OKEx users- an IOU for USDT held on OKEx. Users who hold more than 100 USDT on Okex were directed to make an internal transfer to a designated account and send the screenshot using their Poloniex mail. They will be credited with an equivalent amount of OKU (OKEx USDT IOU) that can be traded for USDT on Poloniex. Since it is an IOU (Futures) OKU will only be redeemable if OKEx reopens the withdrawal:
“In collaboration with Justin Sun, we are providing a solution for OKEx users to withdraw their funds in the meantime and have introduced an IOU token on Poloniex called OKU (OKEx USDT IOU Token). 1 OKU represents 1 USDT held on the OKEx platform and will be redeemable for USDT at a 1:1 ratio on Poloniex if and only if OKEx withdrawals are re-enabled and USDT held on OKEx are fully credited.”
But there is a catch:
“If OKEx withdrawals are not enabled or if USDT held on OKEx are not fully credited, OKU will have no value and will not be redeemable or exchangeable for any other item of value.”
As of the time of writing there has been no announcement from OKEx on when the crypto withdrawal suspension on its exchange will be lifted.