OKX Stops Withdrawal Process; Do Not Panic, Here's What's Happening

OKX Stops Withdrawal Process; Do Not Panic, Here's What's Happening

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OKX has processed no withdrawals in the last five hours: the title itself attracts a lot of attention and even causes a certain amount of dispute. However, the exchange is not experiencing any problems with solvency or liquidity, and the reason behind the issue is a third-party service that is not providing full access to the trading platform.

According to OKX on-chain data, there have been no withdrawals processed in the last hours, the last transaction suggests that OKX sent around 1 million SOS tokens to an unknown address approximately five hours ago. After that, no more operations were processed.

.@alibaba_cloud is still fixing their HK Zone C equipment failure. Our dev team has been in contact with them and have uraged them to fix it ASAP. We are ready to resume once @alibaba_cloud resolves its anomaly.

All funds are safe.

We apologize for any inconvenience. pic.twitter.com/lrn2ITnOD5

— OKX (@okx) December 18, 2022

While some users have been trying to access their holdings in panic, the real reason behind the lack of new withdrawals processed on the network is Alibaba Cloud's service being unavailable in the last hours.

According to an official announcement on Alibaba's website, equipment in Zone C in Hong Kong has lost connection with a central server, and cloud engineers have been actively working on solving the problem and apologized to their users.

Considering the fact that OKX was founded by a Chinese entrepreneur, it could be using Alibaba's cloud services for ensuring a stable connection for its users. Because of the problems with exchange access, no withdrawals are being made, which does not mean that the trading platform itself has any problems.

Once Alibaba fixes its server issues, we will most likely see a surge of withdrawals on OKX and increased network activity on coins that have been stuck on the exchange, which might cause a certain spike in volatility.