OKEx, one of the largest traders, has stated that the measures taken by the firm were natural as the future of BCH and its forks were too unclear. The firm admitted that the firm might have put the users at a loss but considering the volatility of the market this was ‘most fair and rational.’
OKEx further added that the firm was ready to provide evidence to the court and that the allegations notably by Amber AI have been harmful for the company’s reputation.
What is OKEx?
OKEx is a crypto trading firm, and recent statistics show that OKEx is the second biggest player by volume supporting transactions of around $1 billion in cryptocurrencies. The firm is based in Hong Kong but is expanding towards Malta eyeing the crypto-friendly government policies. The firm specializes in future trading, i.e., the firm agrees on purchasing a fixed amount of assets on a specific date at a fixed price, therefore, is subject to risks in price volatility.
What happened?
The firm started dealing in cryptos November last year. When Bitcoin Cash (BCH) was forked into two, the firm forced the early settlement of BCH contracts. Doing this, the firm paid the last trading price to the clients. This move was criticized and experts claimed that this favored the firm and the clients faced the loss of almost 20%. Moreover, OKEx was accused of blocking customer transactions while the firm was operating in profit.
The firm was also accused of paying another company to make posts favoring the firm’s view. The firm made BCH holders pay Bitcoin Satoshi Vision (BSV) despite saying earlier that this was not necessary at all, therefore, saying that the firm was committing fraud and market manipulation.
