OKEx defends itself in recent market manipulation claim related to BCH futures

20 Nov, 2018
by Ryan Boltman
News
OKEx defends itself in recent market manipulation claim related to BCH futures

Recently, Amber AI, a global diversified electronic trading and technology firm reported in a medium article titled "OKEx — It’s Time to Pay the Piper", that the exchange was in fact trading against its clients. The exchange has since come out in defense citing "We reaffirm that we will NEVER trade against our customers and manipulate the market."

The article posted by Amber AI insinuates that OKEx had been performing behaviour similar to that of market manipulation "and estimate $400mm+ of futures contracts have been forced into liquidation as a result."

The Amber AI article goes into great lengths to cover proof of the early settlement of BCH Futures contracts that include manipulation and deceit from the exchange. 

The article concludes "Should there be evidence beyond reasonable doubt that no act of gross negligence or market manipulation has taken place, there would be no need for OKEx to hide behind anonymous monikers and resort to sloppy, unsophisticated propaganda. The course of events surrounding the BCH hard fork are indicative of market manipulation, fraud and deceit."

OKEx has since replied to the article which has caused quite a stir with one of the worlds top cryptocurrency exchanges. 

In the OKEx medium article titled "OKEx’s Statement regarding Amber AI’s Claim", the company confirms from it's side that no illegal activity is taking place and insists that "In the absence of evidence, Amber AI alleged us for trading against our own customers and manipulating the markets. These are completely false allegations and the defamatory statements have caused serious damages to OKEx’s reputation. We reserve all rights to take further legal actions against Amber AI for interfering OKEx’s business."

In the article, OKEx explains why they committed to early expiration of BCH futures citing "BCH spot price of Coinbase, Binance, and OKEx — have already paused trading, which made it impossible to create a BCH index price for settlement. Under the circumstances, we had made the decision to perform an early settlement. We are confident that early delivery was the best option available."

OKEx goes on to ensure customers that they do not trade against them and that trading is a risky business stating "Futures trading is a zero-sum game and there are always gains and losses"

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