OKX Seizes USDT Amid Celestial Token Manipulation Allegations

Cryptocurrency Exchange OKX's Response to Market Manipulation

OKX, a prominent cryptocurrency exchange, recently seized over 2 million Tether (USDT) from five accounts linked to suspected market manipulation of the Celestial (CELT) token. The firm acted following allegations that these accounts engaged in malicious activities.

Unauthorized Promotion and Market Impact

The issue arose when Celestial developers introduced a new blockchain game and reportedly launched an unauthorized social media campaign using OKX's branding. This campaign led to a significant surge in the CELT token's value, doubling within two days. However, the token's value sharply fell by over 50% shortly afterward.

Investigation and Allegations of Insider Trading

In the wake of these events, OKX was confronted with user allegations of insider trading. The exchange clarified its position, stating that it had invested $100,000 into the Celestial GameFi project through its subsidiary, OKX Ventures, back in September 2021. OKX assured that the CELT tokens from this investment were held in OKX Ventures' accounts without any transactions indicating insider trading.

Outcome and Current Status

The trading activity surrounding the CELT token witnessed considerable volatility before and after the announcement of the new blockchain game. Despite the accusations, OKX's investigation did not uncover any evidence of insider trading by its staff. The exchange's decisive action in seizing the USDT highlights its commitment to maintaining market integrity.

By taking these steps, OKX aims to reassure its users of its dedication to transparency and fairness in the cryptocurrency trading environment. This incident underscores the importance of vigilance against unauthorized activities that can disrupt market stability.