A former energy futures trader Qiao Changhe has lost approximately $700,000 in cryptos because of changing the terms of OKEx on $135 million of bitcoin cash (BCH) derivative contracts, Bloomberg reports. As some claim that decision was the key reason for further decline in the crypto market.
OKEx is the largest crypto exchanges in the world that provides fintech services to global traders. Previously it released a statement promising to start providing the deposit opportunities for both bitcoin ABC (BCHABC) and bitcoin SV (BCHSV) tokens.
Qiao says his fund lost nearly $700,000 because “its hedging position on OKEx was abruptly closed at a level that didn’t reflect prevailing market prices.” He also added he would reduce his $5 million fund’s use of the exchange because of “unusual if not unprecedented” way the exchange handled the BCH statement.
Qiao said:
“OKEx is losing its credibility. The futures contract became something nonsense, not something we could use to hedge.”
In OKEx claim that the decision was taken in order to protect customers from the volatility associated with the BCH hardfork.
On November 15, 2018, bitcoin cash split into two independent blockchains — bitcoin ABC and bitcoin SV.
Earlier, the Malta-based crypto exchange received a prestigious Maltese award and was titled as "Crypto Exchange of the Year."
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