OKEx Exchange Attacks “Defamatory” Rumors as BCH Futures Settlement Trouble Appears
As you might have already heard, the fall in the prices of the cryptos is not the only problem that the Bitcoin Cash (BCH) hard fork has indirectly caused. OKEx, the second largest exchange in the world by trade volume, has also had its share of problems as the company decided to settle Bitcoin Cash futures contracts and many users lost money because of this.
Now, the Hong Kong-based firm has accused Amber AI, another company that deals with cryptos, of being defamatory against the company. OKEx has affirmed that the accusations are completely false and that they may cause a serious damage to the image of the company.
A day after the BCH hard fork occurred, on November 14, OKEX forced early settlements of Bitcoin Cash futures at the last price that they were traded in the day before the fork, which resulted in two competing cryptos.
Amber AI has accused OKEx of “outright market manipulation” and also a serious act of fraud, one of the biggest in the history of cryptos. Traders were also very pissed because of all the money they lost due to the early settlement.
OKEx has affirmed last week that there was no trading pair with Bitcoin Cash with enough market depth and trading volume to compose an index for delivery and this is why they decided to settle them. The official response of the company was that the early settlement was implemented for the market integrity and was in the interest of the consumers.
The company also seemed to be certain that this was the best available option for the situation and pointed out that its user agreement lets the company do this in certain conditions like the current one.
The Situation Gets Messy
There was no shortage of finger pointing and trouble following the event and Amber AI affirmed that OKEx did what it did because it was deliberately attempting to interfere with the prices of the underlying futures contracts.
OKEx has even affirmed that it “reserves the right to take legal action against Amber AI” because it deems that the company is interfering with its business without disclosing any evidence. This could turn into a long lawsuit over time. OKEx has affirmed that it never trades against its own customers and that it would never manipulate the market.
The company has affirmed that it Amber AI does not have an institutional account on the company, to which the other company answered that they hold multiple trading accounts on OKEx, including corporate accounts for subsidiaries of the companies and the accounts of the company’s founders.
Looks like the spat between the companies is far from over and there is a pretty big possibility that these companies might still be bickering for a long time over the money that was lost.