The price of gaming project Celestial’s native token CELT was manipulated on OKX by malicious actors, the exchange said in an investigative report.

According to Coingecko, on February 27, CELT’s price fluctuated sharply, dropping about 54% within two hours. dataThis has led many to wonder if there has been market manipulation by unscrupulous traders seeking profit.

CELT prices were manipulated by fake promotions

On February 26th, Celestial officially announced the launch of its blockchain game. The following day, several influencers falsely promoted the game by associating the OKX brand with it. OKX said it’s “not allowed” by the platform.

OKX Ventures will invest $100,000 in Celestial and under the investment agreement, the related tokens will be unlocked within a year, OKX said. The above tokens are locked in the OKX Ventures account, the company added. The exchange also clarified that “OKX Ventures has nothing to do with the project parties.” said:

“As a neutral platform with the exception of OKB and OKT, OKX has no special relationship with any project parties. All publicity under the OKX banner is false publicity.”

Driven by public concern, OKX launched an investigation into this event on February 28th. Celestial apologizes for “negative effects” Said:

“We have never used our relationship with OKX for promotions. All fake promotions were manipulated by other KOLs. I accept their decision.”

Then Celestial Said It announced a large-scale buyback plan to “minimize user losses” and announced that it would burn the tokens acquired through the buyback.

Upon investigation, OKX found 5 accounts that made ‘questionable’ profits from price fluctuations and froze them. A total of 714,381 Tethers (USDT) were frozen, but some of the illicit profits had already been transferred from OKX. According to OKX, Celestial itself agreed to return his 1.3 million USDT.

OKX has not found any internal staff involved in the incident, but says it will take strict action if found later.

OKX Founder Star Shu Said Exchanges will review “listing standards to prevent listing similar shit tokens”. He added that the OKX team may also consider removing his CELT from the platform.

Shortly after OKX published its research report, Celestial Admitted The market manipulation involved its own staff who colluded with outside market makers.

Compensation for Affected Users

OKX’s terms of service prohibit malicious activity such as market manipulation. In the event of such conduct, OKX reserves the right to return illegal proceeds to affected users.

Therefore, OKX said it would deduct the entire balance of 2,014,381 USDT from the 5 malicious accounts. Additionally, the exchange will donate 1 million USDT out of its own pocket to cheer up users. Therefore, according to OKX, a total of 3,014,381 USDT will be airdropped to users who have suffered losses due to market manipulation.

The airdrop targets are users who purchased CELT between 12:00 am on February 25th and 12:00 am on February 28th Hong Kong time, and suffered a loss. OKX added that due to the complexity required for airdrop calculation rules and statistics, they will release the exact rules of the airdrop within two days.

Posted In: OKX, Crime, Tokens

By Jules

Leave a Reply