OKex is Undermining the Credibility of Crypto

OKex’s is Undermining the Credibility of Crypto


It’s about time that someone finally said it.

The OKex exchange has been a shitshow for months and the shady behavior with regards to their exchange’s ownership links, the rampant wash trading, forced liquidations and other features to ‘game the system’ and subsequently their traders, has had a devastating impact on the sphere as a whole.

The purpose of this article will be to expose these connections and activities in full within this article in order to enlighten the crypto community and hopefully spur some individuals to either stop trading on the platform or demand immediate change.

To be clear, OKex is a subsidiary of the company, OKcoin. At times in this article, the two terms will be used interchangeably. However, there are other times where this will not be the case because the distinction between the two entities will be necessary to emphasize a specific point.

Background Behind OKex Exchange

The exchange was founded in 2014 by an individual named Star Xu. It is headquartered in Hong Kong and, until recently, served as the #1 exchange in in all of crypto (according to CMC).

Source: CMC at the time of writing (8/4/2018)

Since its inception almost, the exchange has been mired in nonstop controversy and head-scratching events that have left traders wondering exactly what the hell is going on at OKex.

We’ll start with the most recent claims.

War Between Roger Ver and OKex

You read that right ^.

So, Roger Ver, the owner of the domain, https://bitcoin.com has been in a perpetual dispute with OKex over the name.

Here’s an article about the issue from CoinTelegraph (dated in 2016).

Bitcoin Advocate Roger Ver on OKEX Case: “They Forged My Signature”

_In exclusive interview to Cointelegraph, Bitcoin advocate and investor Roger Ver has confirmed dragging OKEX Fintech to…_cointelegraph.com

According to Roger, he rented out the website’s domain name to OKex and then they violated the contract that they had written up for this arrangement, Then, OKex subsequently forged his name on another contract where his rights to the website were relinquished and he claims that this contract, too, was violated by OKex.

Screenshot from the article.

The screeshot above from the article more or less summarizes this issue.

Now, without having actually been there to witness this arrangement take place, its impossible to say who is right or wrong. OKex, of course, denies everything.

Since that point, Roger Ver has been in perpetual litigation with the exchange over this issue and the alleged non-payment of the money owed to him by OKex under the contract terms.

Here’s a follow-up article on the matter by CoinDesk (which was owned by DCG at the time, just keep that in mind).

Bitcoin Investor Roger Ver to Push for OKCoin Liquidation in Court – CoinDesk

_Roger Ver’s fight against Chinese bitcoin exchange OKCoin is intensifying as the noted bitcoin investor attempts to…_www.coindesk.com

Here’s Where it Starts Getting Weird

Source: https://www.coindesk.com/bitcoin-investor-roger-ver-to-push-for-okcoin-liquidation-in-court/ ; Screenshot from the article

So either they forgot, blew trial or just didn’t care. Perhaps it was a combination of all three.

In either case, Roger Ver won the judgment against OKex, which is just one of a number of odd situations that they have been involved in the just four years of their existence.

Let’s fast forward to the next major incident for them.

The Hack That May or May Not Have Occurred

Yes, even hacks at the OKex exchange are not cut and dry.

Check out this article by CoinTelegraph detailing the hack itself.

Chinese Bitcoin Exchange OKEx Hacked For $3 Mln, Police Not Interested

_On Aug. 28, a user reported that his OKEx account was logged in by a German IP and participated in BTC-ETC trading. The…_cointelegraph.com

Here’s an excerpt from the article that I found to be quite interesting:

How convenient for OKex

Now, this is not to imply that there was any nefarious activity on the behalf of the OKex exchange or OKcoin, but this situation does look very weird and it would be rightful for traders’ suspicions to be raised.

However, there is a chance that the account itself was compromised.

In either case, the situation is weird.

Trader Threatens to Commit Suicide After Alleged Illicit Liquidation of His Account

Suicide Attempt At OKEx Offices After Bitcoin Liquidation

_The cryptocurrency exchange OKEx was accused by one of its customers that it allegedly liquidated his large Bitcoin…_coindoo.com

You can’t make this stuff up folks.

There aren’t a lot of concrete facts that are known about this incident, however, there are a few things that we do know for sure, which are:

  1. The trader was angry because they felt that they were liquidated prematurely/unfairly, which cost them a hefty sum of money (reports allege somewhere in the millions).
  2. The trader’s grievance probably was legitimate when considering the fact that the price of Futures contracts on OKex had somehow dipped as low as 4750 USD on March 30th, 2018. This total is several thousand lower than what the spot price on other crypto exchanges were at that point.

Here’s the actual video of the trader going to OKex headquarters and allegedly threatening to kill themselves:

OKex responded shortly after this incident (within 24 hours), stating that they would roll back all of the futures trades on that platforms to a certain point in order to restore the price to ‘normal’ on the exchange.

They claimed that the price had reached such a low point due to the actions of a few nefarious individuals on the futures exchange that had the ability to close trades that were of such a magnitude that it caused the price to drop down to $5k.

Now, this obviously makes little to no sense, but since the trades were successfully rolled back and those that were liquidated by the extremely volatile price action had their funds restored, there wasn’t much follow-up investigation into how such a thing could have happened and why.

Of course, all of this weird action is not enough for OKex, so just a few weeks later, more wood was thrown on top of the electrical fire that represents their company.

Chris Lee, One of Their CEOs Resigned in May Then Joined a Competitor

Just Resigned CEO of World’s Largest Crypto Exchange OKEx Joins Rival Exchange Huobi

_The outgoing CEO of OKEx crypto exchange has joined rival exchange Huobi just days after resigning from his former…_cointelegraph.com

In yet another weird twist, the CEO of the OKex exchange resigned right after the exchange had gained notoriety as one of the highest traded volume exchanges in the entire space.

The exchange (OKex) is cited as stating that he left the exchange to pursue ‘other interests’ in life, or something to that effect.

However, further released evidence seems to indicate that not even OKex anticipated his abrupt departure from the exchange.

Behind Chris Lee’s resignation: love-hate relationship with Star Xu

_Former CEO of OKEx Chris Lee publicly announced his resignation without the knowledge of CEO of OKCoin Star Xu. A week…_medium.com

Below, are statements by Chris Lee from the Medium article cited above:

So it appears that there was a pretty deep internal conflict between the two individuals.

Apparently it was deep enough for Chris Lee to quit spontaneously, then go work for a competitor in Huobi.

Coincidentally, Huobi is the exchange where Xiaolai Li is currently posted at:

Source: https://blog.huobi.pro/hc/en-us/articles/360000123781-Huobi-Blockchain-Big-Data-Weekly-Insights-Vol-6-; In case you didn’t know, Xiaolai Li is a big deal

Xiaolai Li is invested in Huobi through Zhenfund. This is not known in the article that was cited, but additional evidence will be provided to corroborate this statement:

Source: https://news.8btc.com/mapping-of-chinas-crypto-and-blockchain-capitals

Here’s Proof That He Actually Manages This Fund:

Source: https://bitcoinmagazine.com/articles/16-billion-chinese-fund-launches-support-blockchain-startups/

So, the intricate web of connections between all of these Chinese blockchain figures is interesting…to say the least.

Massive Report Alleging Fake Volume on the Exchange Was Recently Released as Well

In this cogent piece by Sylvain Ribes, he outlines the proliferation of fake volume on multiple crypto exchanges, noting that the primary offender appears to be OKex:

Chasing fake volume: a crypto-plague

_In this piece I will expose why I believe more than $3 billion of all cryptoassets’ volume to be fabricated, and how…_medium.com

This is a screenshot from the article which shows one of their markets:

As the author of this study stated, this is painfully obvious.

The author then provided this image in contrast:

This is the method that the trader used to detail the alleged fake volume:

Coincidentally, Huobi was found to be right behind OKex in terms of the incidence of fake volume:

To say that this information isn’t absolutely astounding, would be a vast understatement.

Considering the fact OKex is still ranked as the top exchange in all of crypto on Coinmarketcap, potentially skewing interpreted cryptocurrency metrics substantially, it begs the question of why Coinmarketcap continues to allow this exchange to be listed on their platform.

OKex Latest Futures/Derivatives Market Debacle

Before even attempting to deliver an exposition on this issue, please keep in mind that, at the time of writing, OKex has been in operation for less than four years.

That means that all of these events have happened in a space of less than four years.

Now, let’s begin discussing what in the world happened to OKex in the last week that caused the most recent debacle on their exchange:

Regarding the Forced Liquidation Incident on Jul 31, 2018

_An enormous long position in BTC0928 futures contract was force-liquidated at 20:17:14 July 31, 2018 (Hong Kong Time…_support.okex.com

As they note in the article, the exchange was forced to liquidate a relatively massive long position in their futures market that was valued at an excess of $400M.

The trader had apparently leveraged a long position x100 on 4 million+ contracts for Bitcoin on July 31st.

The OKex team claims that their ‘risk management detection’ system had alerted them to this order and that they reached out to the trader, yet they were somehow “unable” to amend the situation before their order was liquidated.

This statement is extracted from the press release posted above from OKex

Of course, once the price of Bitcoin lurched downward shortly after contacting the trader despite OKex’s best and most diligent efforts to remedy the situation immediately (according to their version of events), the damage had already been done.

Apparently the full amount of the long contracts had been liquidated on the exchange platform, which is an amount that somehow OKex could not cover (why wouldn’t this amount be matched with orders?).


This is the first of a litany of articles that will be released about this topic.

This is going to be released exclusively on Steemit only, because the individuals named in here tend to have the ability to get everything removed at will.

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