OKB, as the native coin of China-based crypto exchange OKEx, surged by 11% today following rumors that its founder Mingxing "Star" Xu has been released from Chinese police custody.
Up till now, the price of an OKB is trading at $5.42, a 12.6% increase from $4.81 yesterday.
After Xu was under custody in mid-October, the price of OKB fell from about $6.00 to $4.26. The exchange paused withdrawals following the news of Xu's custody by Chinese police.
OKEx disputes this characterization and has rebutted rumors that Xu was detained for money laundering.
"Wu Blockchain," a Chinese crypto reporter, today posted rumors that Xu has "gained some freedom" and that Chinese police haven't yet worked out whether to end the investigation or to release him on bail ahead of a trial.
As per Wu Blockchain, there is no timeline for resuming withdrawals, noting "This may bring a little bit of optimism in the investigation storm sweeping the Chinese crypto industry."
All week witnessed volumes for OKB have been rising. Metrics on data analytics site CoinMarketCap showed $56 million worth of OKB traded each day on Monday. Traders shifted $143 million worth of OKB.
Despite the price of OKB surging, OKEx is still not allowing withdrawals on its exchange. An administrator on OKEx's Telegram chat said, "Apologize for the inconvenience caused. It is not available yet. Even though I'm unable to share a time frame right now, my team is trying our very best to resume full platform functionality."