Crypto Exchange OKX Seizes 2,000,000 USDT from Five Accounts Allegedly Involved in Price Manipulation
Crypto exchange OKX says it has taken action against five accounts involved in the market manipulation of Celestial (CELT).
CELT is the initial token of the Celestial metaverse project, which recently announced the creation of a new blockchain game.
Celestial developers promoted the game on social media using the OKX token, causing the price of CELT to rise by nearly 200% before falling by over 50% in the last 24 hours.
Amid the insider trading allegations, OKX says it did not authorize the promotion and denies having a business relationship with Celestial. It also launched an investigation and eventually discovered the suspicious accounts.
“CELT is a Gamefi project invested by OKX Ventures in September 2021. The investment amount is $100,000. According to the investment agreement, relevant tokens will be unlocked within one year. These tokens are locked in the OKX Ventures account without any operations. In addition, OKX Ventures has no relationship with the project party.”
OKX has already frozen 714,381 USDT held by the accounts and says the Celestial project agreed to return 1.3 million Tether (USDT). The Seychelles-based company says it will return the amount to affected users and allocates an additional 1 million USDT for the refunds.
“According to 4.15 of the OKX User Terms, OKX strictly prohibits malicious actions such as market manipulation, and has the right to return the illegal proceeds of market manipulation to the injured users.” OKX will withdraw the entire balance of 2,014,381 USDT from the 5 market manipulation accounts. In addition, OKX will also donate 1 million USDT from its own funds.”
OKX says it will release a total of 3,014,381 USDT to those who purchased CELT tokens between 12.00 on 25 February and 12:00 on February 28 Hong Kong time which incurred a loss.
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