Hong Kong-based cryptocurrency exchange OKEx, one of the largest in the industry, recently rolled back the data from its bitcoin futures contracts, after “abnormal” pricing saw one trader threaten to commit suicide by drinking poison at the exchange’s head office.
Through a blog post the exchange detailed the move. The blog post reads that “OKEx will rollback all the data of weekly, bi-weekly and futures contracts of all tokens to 4:47 Mar 30, 2018 (Hong Kong time).”
In a message sent to traders, the cryptocurrency exchange revealed the move, while justifying the “abnormal” prices by claiming its users were closing huge numbers of contracts “regardless of price.” This could’ve been price manipulation on behalf of some users.
In response, OKEx reminded users that according to User Services Agreement, it may suspend accounts involved in price manipulation.
“OKEx has the right to warn against all unethical behavior such as malicious manipulation of prices, malicious influence on trading systems, restrictions on trading, shutting down of accounts, etc.”
According to reports, officials’ attempts to remedy the “abnormal” situation with the quarterly futures contracts weren’t effective. The cryptocurrency exchange’s futures dipped to about $4,755, crashing over 30 percent while the rest of the market was down by about 5 percent.
This saw various traders see their holdings wiped from their accounts as their positions were being liquidated. The event greatly reduced traders’ maneuverability, to the point in some cases liquidation was inevitable.
The ordeal saw one of the exchange’s traders threaten to drink a bottle of poison. In a dramatic video circulating on Twitter, the trader is seen holding a bottle of the dangerous liquid at the exchange’s head office in Hong Kong.
#okex illegally liquidated this Chinese person $10,00,000 worth of #Bitcoin $BTC. He was trying to commit suicide right in front of the okex office. https://t.co/wFu3ULBaq0
— Coin Panda (@8bitandstuff) March 29, 2018
Reports suggest he lost a total of $10,000,000 from the liquidation. As a result of the loss, some claim the man’s wife wanted to divorce him for loosing all that money, which could further lead to the loss of his 8 months old child.
OKEx’s message added that the company reserves the right to suspend trading, cancel transactions, and roll back data if necessary. A blog post the exchange keeps on updating details that the roll back has been completed, and that normal trading operations have resumed.
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