OKEx Traders to Suffer Losses

OKEx closed several positions for BCH futures for $ 135 million without warning
20 November 2018   2125

On the eve of the hard fork in the Bitcoin Cash network, the OKEx exchange closed several positions for BCH futures for $ 135 million without warning. Because of this, some traders suffered losses, Bloomberg reported.

On November 14, OKEx changed the terms of futures contracts for Bitcoin Cash, arguing that protecting customers from the looming market volatility associated with the future hard forks.

On November 15, due to a technical malfunction on the platform, traders could not make transactions within two hours, while increased volatility was observed in the market.

According to the manager of Consensus Technologies Chao Changhei, OKEx suddenly closed its fund’s position at a non-prevailing market price. Because of this, the fund lost $700000. He added that due to the ambiguous reaction of the management of the exchange to hardfork in the Bitcoin Cash network, his five millionth fund will reduce cooperation with OKEx. In addition, one trader who wished to remain anonymous filed a complaint against OKEx with the Hong Kong Securities and Futures Commission.

As stated by the head of the OKEx division, Andy Chung, this “fair and rational” solution was aimed at avoiding market manipulation.

Note that on November 12, OKEx representatives issued a warning to customers, which said it was necessary to focus on “risk management in order to avoid undesirable losses during trading before and during hard forks”

Court to Dismiss BCH 'Hijack' Lawsuit

UnitedCorp claimed that it incurred significant losses due to the actions of the defendants, which are Kraken, Bitmain and Roger Ver
06 February 2020   586

The court dismissed the lawsuit of the mining company United American Corp. against the Kraken exchange, its founder Jesse Powell, Bitmain, its co-founder Jihan Wu and Roger Ver, who accused them of manipulating the Bitcoin Cash market and claimed $ 4 billion in compensation. As a reason for refusal, the court pointed to the lack of jurisdiction of the case and insufficient grounds.

UnitedCorp claimed that it incurred significant losses due to the actions of the defendants, who, after the emergence of Bitcoin SV in 2018, organized the so-called “hash war” and competed for 11 days to form the longest chain. The role of the Kraken exchange in these events was due to the fact that it was the first to decide to award a ticker for the BCH chain, also called Bitcoin ABC.

The simultaneous decrease in the price of Bitcoin Cash from $ 400 to $ 200 led to a significant drop in mining revenue of UnitedCorp. The firm claimed that the defendants violated the Sherman Act (the first US antitrust law proclaiming a crime to impede free trade by creating a trust and conspiring for such a purpose), Clayton's law, which also regulates the activities of trusts, demonstrated negligence, unintentional misrepresentation, improper enrichment and treatment property in their favor.

During hash wars, the amount of computing power in the Bitcoin Cash network reached 7.88 EH / s, whereas now it is 3.99 EH / s. Due to the actions of other miners, UnitedCorp could receive a significant part of the awards it had hoped for before, and the depreciation only worsened its position.

The court dismissed the claim without further restrictions. Thus, UnitedCorp is allowed to submit its revised version again until February 28th.