OKEx Traders to Suffer Losses

OKEx closed several positions for BCH futures for $ 135 million without warning
20 November 2018   288

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”

UnitedCorp to File Lawsuit Due to "BCH Manipulations"

Suit is filed against Roger Ver, Kraken and Bitmain
07 December 2018   145

The technology company United American Corp (UnitedCorp) sued Bitmain, Kraken, Bitcoin.com, Roger Ver, and others involved in a “well-planned scheme to take control of the Bitcoin Cash network.” This is reported on the website of the corporation.

Representatives of UnitedCorp argue that the actions of the defendants caused the "global capitalization meltdown of the Bitcoin Cash." These actions, the company believes, were aimed at enriching the above market participants to the detriment of others.

The company’s website also contains a diagram of the actions of the above market participants:

Bitcoin Cash Manipulation Scheme by UnitedCorp
Bitcoin Cash Manipulation Scheme by UnitedCorp

The events described are related to the recent hardfork of Bitcoin Cash, as a result of which the network of this cryptocurrency split into two competing chains. After hardfork, according to UnitedCorp, the companies and individuals in the lawsuit took control of Bitcoin Cash.

We are bringing this suit on behalf of UnitedCorp because we believe strongly in the value and integrity of democratic, distributed and decentralized blockchain networks which will become more important with time. In order to maintain confidence in cryptocurrencies such as Bitcoin Cash, no person or entity can be allowed to control them.

Benoit Laliberte

President, UnitedCorp

At the same time, the company is convinced that these actions were aimed at centralizing the BCH network. Also, UnitedCorp claims that on November 20, the Bitcoin ABC development team introduced the “poison pill” into the blockchain. It was presented as “Deep Reorg Prevention”. These actions, confident in the company, were, in fact, aimed at strengthening control over the network and its future updates.

UnitedCorp requires a court order prohibiting defendants from engaging in future activities that harm the Bitcoin Cash network. In addition, the company intends to receive compensation for damages, the amount of which will be established in court.

It should be noted that Bitcoin SV, a cryptoactive asset that emerged as a result of hard forks, came in fifth in the CoinMarketCap market capitalization rating.

The rate of Bitcoin SV is growing despite the general decline in the market. Over the past 24 hours, the price of BSV has increased by 21%, and the asset capitalization has approached $ 2 billion.

At the same time, the main competitor of BSV - Bitcoin Cash - has fallen by 16.5% in the last 24 hours, having consolidated on the 7th line of the rating.