Crypto Exchange OKEx to Roll Back Trades After Futures Plunge

Hong Kong-based crypto trading platform OKEx will roll back futures transactions after it moved to temporarily halt futures trading and pause token withdrawals after what it called an “irregular” sell-off.

OKEx, operated by cryptocurrency exchange OKCoin, said Friday that the suspension came after the sell-off – which occurred between 5 a.m. and 6:30 a.m. Hong Kong Time (HKT) or 21:00 to 22:30 UTC this morning – pulled down the price of the quarterly bitcoin futures significantly compared to the underlying asset’s value.

The rollback will undo transactions going back to 04:47 a.m. HKT, and is set to occur at 3:30 p.m. HKT today, according to the statement.

“OKEx always has the customers’ best interests at heart, and we are dedicated to providing the best products and technologies to protect our customers. Transactions were suspended for several hours due to the incident. Please accept our sincere apologies for the inconvenience caused,” the platform’s team wrote in its notice.

The announcement came in the wake of widespread criticism from users, who complained that OKEx’s system can’t prevent what was seen by many as maliciously intended activities. Some investors went as far as to allege that OKEx itself was involved in the alleged manipulation. The platform has not responded for comments.

Screen captures shared on Twitter indicated that during the period, the price of bitcoin futures on OKEx first started the fall around 22:00 UTC to nearly $5,200, which was followed by a quick rebound to around $6,000, only to slide further to as low as $4,755.

However, within the same period, the price of bitcoin largely held at around $7,000, according to CoinDesk data, indicating a 20 percent difference between prices.

The price of bitcoin fell to a 50-day low Friday morning as it dropped below $7,000. During Thursday’s trading session, the prices of other major cryptocurrencies, including bitcoin cash and ether, fell to their lowest point since the start of the year.

Trading board image via Shutterstock

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Source: Coindesk