Cryptocurrency exchange BKEX has suspended withdrawals to coordinate an investigation with authorities into the origin of customer funds.
The above announcement was made on May 29, along with BKEX’s statement that user funds are involved in money laundering and that the exchange is cooperating with authorities to investigate.
BKEX claims that user funds are involved in money laundering, adding that it is working with law enforcement agencies to gather more evidence.
“The BKEX team will fully cooperate with the regulatory investigation and make every effort to restore the exchange to normal operations. We will actively work with the relevant authorities to resolve the current issues faced to ensure that the rights of our users are protected to the greatest extent possible.”
The exchange continues that it will maintain a transparent and timely communication process during the investigation and urges users to contact their customer service if they have other issues.
Meanwhile, the fact that BKEX temporarily stopped allowing deposits and withdrawals but did not give a deadline made many users question the financial situation of the company; at the same time raised concerns about their assets on the exchange.
BKEX was established in 2018 and is registered in the British Virgin Islands. Data from CoinMarketCap, the exchange’s trading volume is $434.15 million in the last 24 hours.