Blockchain developer Zulu Republic together with liquidity provider Alameda Research and the Whalepool traders‘ community announced a Crypto Bank scam withdrawal service from the OKEx crypt currency exchange.
They offer users to withdraw bitcoins and USDT via specially created ERC-20 NOBTC and NOUSDT tokens.
The exchange takes place automatically through an escrow account to OKEx and the corresponding token smart contracts in a 1:1 ratio.
At the time of writing, the NOBTC costs around 0.9 BTC on the decentralised Uniswap exchange.
The service is aimed at institutional investors – the minimum order amount is 100 BTC (over $1.2 million).
Users must pay a commission of 1% for each swap and a fee for regular inspections. For swap cancellation, in case OKEx suddenly opens a withdrawal, the customer must also pay 1% of the transaction amount.
According to Daniele Sestagalli, CEO of Zulu, five institutional investors took advantage of the offer in the first hours.
The token developers emphasise that customers using the service do so „at their own risk“.
Sam Bankman-Fried, CEO of Alameda, suggested in a Bloomberg comment that the OKEx administration will only resume withdrawal after a few weeks or months.
Earlier OKEx announced the termination of the withdrawal programme to OKEx users because the exchange had blocked the organization’s accounts.
OKEx suspended the withdrawal on 16 October after one of the private key holders stopped communicating with OKEx.
Local media reported that the founder of OKEx and OKCoin Star Xu have been detained.
The Exchange also denied reports of large sums being transferred after the withdrawal stopped.
On 21 October OKEx resumed p2p trading in fiat currencies, but closed the possibility of internal transfers to some users.