OKex to Refut BTC Futures Price Manipulation Rumours

OKex cryptocurrency exchange issued big statement regarding recent events and rumours
04 April 2018   465

Representatives of the Hong Kong exchange OKEx said that the information spread on the Internet that the site is involved in manipulating prices in the bitcoin futures market is untrue.

We, as a trading platform, do not make profit from the price volatility, but generate income from trading fees. We have not reason to, and have never and will not, manipulate the prices of any of our market.
 

OKex Team

It is also noted that the images that appeared in social networks and allegedly evidence of manipulation are fake. In addition, the exchange added that the site will have new rules that should prevent the repetition of the situation on March 30:

At 5:00-6:30 on Mar 30, 2018 (Hong Kong Time), the price of BTC quarterly futures contract was manipulated by a group of people, making it fall significantly below the BTC index. To protect the interests of our customers and to eliminate the adverse effects induced, we decided to rollback the futures trading data (according to OKEx Futures Trading User Agreement 6.2). In light of this problem, new "Price limit rules" were immediately launched to prevent similar incidents from occurring. We deeply apologize for the inconvenience caused.
 

OKex Team

On March 31, a Chinese trader, who opened a major position on bitcoin futures, threatened to commit suicide in front of the OKEx office, claiming that the liquidation of his position was done wrongly.

Chinese Police to Bust OKEx Founder

But looks like, there's no need for panic - media reports that police let him go without charges
12 September 2018   189

The Shanghai police detained the founder of the OKCoin exchanges and OKEx Star Xu, presumably in connection with the investigation of cryptocurrency fraud. This is reported by the local newspaper Sina News.

Law enforcement agencies of Shanghai received complaints from investors on the WFEE crypto-currency company, of which Star Xu is a participant. Police detained the founder of the Chinese exchanges for interrogation in the investigation of this case.

Sina News reports that if the police do not file charges against Stary Xiu for participation in the fraudulent scheme, he will be released within 24 hours.

But today Star Xu was discharged. He is supposed to help the investigation of investors' complaints about the cryptocurrency company WFEE. This is reported by CoinDesk with reference to local publications.

As far as I know, Star called the police for help when he was surrounded by a group of people in Shanghai. The police arrived on the scene and invited all of them to the police station.
 

Andy Cheung at Twitter

OKEx Team

The police brought everyone to the station to clarify the circumstances, and then released the founder of OKCoin and OKEx without charge. Andy Cheung also noted that Star Xu at the moment has nothing to do with OKEx.

It is noteworthy that on the same day several OKEx clients applied to the Shanghai Police Department. They reported that on September 5, during the fall of the price of the first cryptocurrency, their BTC futures positions on the exchange were forcibly liquidated.

Due to a bug on the platform, which users were not warned about, investors could not close positions on their own, which led to financial losses. At the same time, the press secretary of OKEx reported to CoinDesk that the company was not aware of the problematic incident.

Shortly after, in Twitter-account of the venture fund OK Blockchain Capital (OKBC) and partner of OKEx published a series of tweets that shed light on the situation. In particular, the fund denied any connection between Stuart Xue and WFEE.

OK Blockchain Capital Twitter
OK Blockchain Capital Twitter

It is known that OKBC together with a group of venture investors acquired a start-up WFEE. However, soon WFEE changed the original white paper, which OKBC representatives were not notified about.

OK Blockchain Capital stated that at the moment it does not participate in the WFEE project and is not responsible for the results of the company's activities.

In another tweet, OKBC reported that last month OKEx conducted delisting of the WFEE token and warned users about possible risks associated with the company.

The case of WFEE was sent to the Beijing Police Department.