OKEx suspended trading bitcoin futures due to manipulation

According to the information posted by the OKEx support team, several users tried to manipulate the price of the quarterly bitcoin futures, closing “a huge number of positions at the market price and ignoring the contract value, which triggered its fall to an unusually low level … and a significant deviation from the bitcoin rate.”

Such transactions violate the exchange’s policy, and OKEx, referring to clause 6.2 of the user agreement, applied its right to withdraw transactions: the exchange will cancel all transactions for weekly, bi-weekly and quarterly bitcoin futures, returning data to March 30, 4:47 on Hong Kong – that is, by the time when the first questionable operations were noticed.

“All futures contracts will be delivered on March 31, 00:00 on Hong Kong,” the exchange said, also indicating that the trading will be resumed after the delivery of contracts.

A Twitter user under the @Whalepool nickname writes that the price of a quarterly OKEx futures fell below $ 5000, while the spot price for bitcoin exceeds $ 7,000. In another tweet, he notes that orders for the liquidation of positions occupied 18 pages.

On the night of Friday, bitcoin fell to a low of the beginning of February and traded for $ 6726. CEO of Digital Currency Group Barry Silbert urged investors to suffer “another 18 days”, linking the continuing fall with the tax period in the US, which will end on April 17.


Write: Sara Bauer


 

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