OKEx is Accused of Manipulating the Market
OKEx, a popular exchange founded in 2017 is currently facing some major backlashes from the crypto community. The exchange has been accused of deliberately manipulating the crypto market.
OKEx Accused
The platform was accused recently of adjusting Bitcoin Cash (BCH) futures settlements during the coin’s widely publicized hard fork.
According to the report, “OKEx abruptly forced the early settlement of its Bitcoin Cash contracts to avoid potential losses to [their] customers caused by the short-term volatility and possible market manipulation attempts.” As a result of this,“ the BCH future contracts were settled early against the last traded price at early Nov 14, shortly after the announcement.”
According to an affected Hong Kong-based investor who trades using OKEx, Amber AI, “OKex had changed the rules of the settlement index by discontinuing to reference Bitfinex prices before the early settlement.”
He further stated that:
“By changing the settlement date and delivery rule against the open interest in the market, [OKex] invalidated their previous announcement.
This meant that for each short position carried in the contract, platform implicitly imposed a fixed loss on the notional amount, delivering the contract 20% higher vs fair value.
He added that:
“This is no different than the Chicago Mercantile Exchange (CME) announcing that the S&P500 E-Mini Futures will settle against the Shanghai Composite Index in the midst of trading.”
OKEx is Ready to Fight this
The exchange has since then responded to this accusation and made it clear that it has evidence to prove that it has not done any of the things it is been accused of. The exchange made it known that it is ready to fight this in court if the need be.
A recent report has however made it known that this is the third time the exchange will be accused of manipulating in 2018 alone. The report stated that “this is at least the third time this year that OKEx has shown strange price volatility on their exchange.”
