Traders suffer losses in OKEx suddenly bitcoin cash contract settlement

According to reports, before the bifurcation last week, OKEx completed the bitcoin cash futures contract settlement in almost without any warning, causing losses to the traders.

According to Bloomberg News reported on Monday, OKEx decided to cause some investors suffered heavy losses, including Qiao Changhe, founder of a company called Consensus Technologies company, he said his fund fell 700 thousand U.S. dollars, because the exchange delivery contract price does not reflect the market price.

Therefore, he thinks he may have to exchange fund investment by $5 million.

“OKEx is losing its reputation. Futures contracts have become nonsense, instead we can be used to hedge.” Qiao Changhe said.

According to reports, the other four did not disclose the Name traders said they will reduce the cooperation with OKEx, even stop and exchange. According to Bloomberg, one to the Chinese committee financial regulators, securities and futures four complaints.

The day before bitcoin blockchain hard cash bifurcated, 11 March 14, OKEx announced a notice on its blog: “because of the hard bifurcation Bitcoin Cash coming, all BCH futures will be 9:05 in the morning and 11 months to stop trading for 2018 years on the morning of 14 10:00 CET (UTC +1) delivery. We will provide a detailed explanation in the short term.”

Later in the day of the announcement, said it chose to use the last trading price as the delivery price, because there is no bitcoin cash transactions with “market depth and trading volume sufficient to constitute a delivery index”.

OKEx said: the pre bifurcation is called a very special case”.

“We are worried that the premature announcement may be manipulated to make room for the market and bring loss to our customers. Therefore, we decided to set aside time for short notice, to maintain market fairness and stability.”

It also explains why choose to stop trading hours after delivery, they said at the same time these two transactions may lead to a large number of orders to ask, “may smash BCH and lead to huge fluctuations in the spot market.”

This is not the first time OKEx to make such a decision. In early August, OKEx freeze an account of its users, and make 4168515 bitcoin futures contracts in the customer’s “huge” long positions and refused to exchange began forced open positions reduced requirements.

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