OKEx Denies Traders’ Accusation of Fiddling With Contract and Market Manipulation
Embroiled in the recent charges for fiddling with Bitcoin Cash future contracts, OKEx, one of the world’s most popular cryptocurrency trading platforms, posted a statement today November 20 claiming the exchange is falsely accused by Amber AI.
On Nov.14, a day before the hard fork of Bitcoin Cash, the exchange posted an announcement noticing futures traders that “OKEx delivered all BCH contracts according to the respective last traded price at 9:05 (CET)” due to the upcoming hard fork, and explained that an early announcement “may make room for market manipulation and cause loss to our users. Therefore, we decided to give a short notice in order to maintain the fairness and stability of the market.”
Chinese media as well as bitcoiners believe the exchange’s unorthodox move, along with the BCH hashwar, has resulted in the plummet of the crypto prices to some extent.
Traders have reportedly suffered losses after Hong Kong-based crypto exchange OKEx forced the early settlement of its Bitcoin Cash future contracts almost without warning ahead of last week’s BCH hard fork. According to a Bloomberg report Monday, the move of OKEx has resulted in significant losses for some traders. One of these furious investors filed a complaint with Hong Kong’s Securities and Futures Commission.
Qiao Changhe, founder of a firm called Consensus Technologies, said his fund lost $700,000 because OKEx closed the contracts at a level that did not reflect prevailing market prices. For this, he said he would reduce his $5 million fund’s use in the exchange. Four other traders also said they would scale back or terminate their relationships with OKEx.
A crypto market-making firm named Amber AI warned the exchange in a medium post titled “OKEx, It’s time to pay the piper”, saying
“Over the past week we have seen behavior indicative of market manipulation by OKEx, and estimate $400mm+ of futures contracts have been forced into liquidation as a result．”
Responding to Amber AI’s allegation, the exchange post a statement on Weibo saying
“Amber AI has done serious damage to OKEx’s brand credibility by defaming the platform for manipulating the market without evidence. We will file a lawsuit against Amber AI and would like to present transaction data related to the BCH contracts to the court.”
The exchange said it found no institutional investor named Amber AI but an individual account, and that the account has in effect made some profit in the early settlement of his BCH future contract.
This is not the first time OKEx has been involved in traders’ accusations either for platform malfunction or abrupt decisions, it seems the company has big problems with its futures business.