Closing out a futures contract by $135 million at the Hong Kong crypto currency exchange OKEx taken the hard forks of Bitcoin Cash to protect clients from possible volatility have led to significant losses by leading traders. According to the victims, the move was unexpected and unpredictable side of the exchange.
So, one of the traders and the Manager of the company Consensus Technologies Chao Chanchai (Changhe Qiao) said that from his side’s loss amounted to $700 thousand, and the position his company was, without warning, closed at a price that at that time the market was not predominant. Therefore, in the further cooperation of the company with crypto currency exchange will be reduced due to the loss of credibility. The same decision came four large trader one of which is due to the prevailing situation in OKEx filed a complaint with the Commission on securities and futures of Hong Kong (SFC).
In OKEx has brought customers an apology and explained that they were forced to act without warning – to prevent market manipulation, and the step was the most honest and rational at the time.
Recall that the insecurity of cryptocurrency exchanges often explain the concerns of institutional customers to enter the stock market. In August, due to the elimination of long positions on bitcoin clients OKEx also suffered losses, but the exchange took a part of them. At the same time, the network appeared information about the fact that the founder of the exchanges OKCoin and OKEx Old Xu (Xu Star) were detained for questioning in the case of fraud. However, later it turned out that Xu himself call the police when they met with disgruntled investors.
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