Exchanges

20/11/18 10:47 UTC-4

OKEx denies "market manipulation": details of a BCH futures incident

OKEx denies allegations from AMBER AI
OKEx denies allegations from AMBER AI

One of the largest cryptocurrency exchanges in the world, Hong Kong OKEx, has denied allegations of market manipulation, sending circulars to users on calculations of Bitcoin Cash (BCH) futures, from a statement on Tuesday, November 20, on the Cointelegraph.

As it is known, OKEx exchanger put forward BCH futures for sale, but on the eve of hard forkFork
– is the intentional use of one code base of a software project to start another. That is, changing the blockchain code to split it into two.Details
, without warning, closed several positions on the sale of futures. As reported by the Bloomberg publisher, because of this, many traders suffered losses. The total loss after closing positions amounted to 135 million US dollars.

According to the victim of the closure of futures, the manager of Consensus Technologies Chao Changhei, OKEx suddenly closed its fund’s position at a non-prevailing market price. Because of this, the fund suffered losses in the amount of 700 thousand dollars.

After, in a message from AMBER AI, accusations were made towards OKEx: "(...) This indicates a direct market manipulation, and one of the most serious cases of fraud in the history of tradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details
a futures limit orderOrder
– automatic application to buy or sell cryptocurrency. Orders are used during trading on the stock exchange to open and close a position. Details
on the cryptocurrency market."

A message published on November 19 from AMBER AI is a lengthy analysis of the calculation of futures and leads to allegations that OKEx has violated its own rules several times. Because of this, traders working on this exchange lost about $ 24 million.

In response to the incident, OKEx sent a circular to users, stating that the change in the urgent settlement was "based on the integrity of the market and the interests of the client".

"In the absence of direct evidence, Amber AI suggested that we trade against the interests of our own clients and manipulate the market. These are false accusations (...) These slanderous statements have seriously damaged OKEx’s reputation."

In their blog, OKEx added that they would consider the possibility of opening a lawsuit against AMBER AI for illegal "interference" with the work of the crypto-exchange.

 

Editor: Yuliya Soroka

See also: "Kraken supports hard fork Bitcoin Cash"

#OKEx, AMBER AI, Hong Kong, futures, Bitcoin Cash

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