Crypto exchange BKEX suspended withdrawals after funds on its platform were used for money laundering, according to a May 29 statement.

BKEX stated that its users’ funds were involved in money laundering, adding that it was cooperating with law enforcement agencies to gather evidence.

Due to this, the exchange suspended withdrawals for an undisclosed period. It added:

“BKEX team will fully cooperate with the regulatory investigation and do its best to restore the normal operation of the exchange. The team 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 continued that it would maintain a  transparent and timely communication process during the investigation and urged users to contact its customer service if they had other issues.

Meanwhile, BKEX’s action has drawn criticism from several users who questioned why the exchange would suspend withdrawals for all of them because of the actions of a few. Another user wondered about the platform’s financial health amid the recent struggles of rival centralized exchanges.

However, a BKEX angel assured users the platform would resume services soon and advised them to be patient.

As of press time, BKEX was yet to respond to CryptoSlate’s request for comment.

Centralized exchanges have come under increased scrutiny following FTX’s collapse last year. On May 22, Hotbit shut down services because of its deteriorating operating conditions.

BKEX was founded in 2018 and is registered in the British Virgin Islands. Data from CoinMarketCap showed that its trading volume was $434.15 million during the last 24 hours.

The post BKEX freezes withdrawals amid money laundering probe appeared first on CryptoSlate.

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