Okex Fights Market Manipulation Rumors Following Painful Futures Contracts Rollback
Okex has made another announcement regarding its decision to roll back futures contracts after clients were hurt by massive liquidations. The company apologized again for the inconvenience, tried to address rumors regarding the incident and threatened to sue anyone spreading them.
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BTC Futures Manipulated
Okex, the Chinese-run cryptocurrency exchange based in Hong Kong, is trying to fend off rumors circulating in the region’s online bitcoin trading community. The company has issued a new clarification of recent events it hopes will restore clients’ confidence in its operation. Accusations regarding its recent rollback of BTC futures contracts, alleging that Okex intentionally triggered forced liquidations by manipulating prices, were the team’s top concern.
Framing its actions as part of an obligation to protect clients from market manipulation, Okex states that: “The price of BTC quarterly futures contract was manipulated by a group of people, making it fall significantly below the BTC index. To protect the interests of our customers and to eliminate the adverse effects induced, we decided to rollback the futures trading data.”
The company further attempts to reassure traders it has no incentive to see them lose funds by explaining that: “OKEx provides a platform to allow customers to trade in our order books, but we are not directly involved in the trades. Moreover, all the transaction details are public. We, as a trading platform, do not make profit from the price volatility, but generate income from trading fees. We have not reason to, and have never and will not, manipulate the prices of any of our market.”
As we previously reported, the incident saw many millions wiped out in obliterated long positions, leading to angry reactions for traders. One Okex client even reportedly threatened to commit suicide at the firm’s Hong Kong HQ after saying he lost $10 million through forced liquidation. With tensions running this high it is no surprise that the exchange is facing such a public relations disaster.
Besides giving its side of the events, the company also addressed other concerns. The announcement displayed doctored images of fake chart screenshots spreading online supposedly showing evidence of price manipulation by Okex. It also exhibited a screenshot of legal advice said to be confirming the legality of the operation under the law of Belize where it is officially registered.
Finally, the company warns those spreading what it sees as libelous accusations that they might get sued by Okex. “We reserve the right to take necessary legal action against any parties who libel our company and reputation by any means.”
Do you think Okex is right to threaten to sue parties who spread “libelous accusations” or is it overreaching? Tell us what you think in the comments section below.
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