OKX token exchange to recover $2 million from creators of CELT token for price manipulation
The exchange OKX will collect $2 million from the creators of token CELT for price manipulation and return the money to victims.
The platform announced that it has frozen 700,000 USDT in accounts associated with startup Celestial and agreed with it to return another 1.3 million USDT. The funds will be used to cover user losses
Cryptocurrency exchange OKX revealed price manipulation of Celestial tokens (CELT) on its platform and got the project team to agree to pay 2 million USDT as compensation for losses. According to OKX, it will also add $1 million of its own money to compensate users for their losses.
Celestial is a metaworld where players can colonize planets, mine resources, form alliances and participate in intergalactic wars. The CELT token is the project's native cryptocurrency, which is used in-game to purchase attributes, resources, weapons, and territories in the form of NFTs. Celestial's ecosystem includes a marketplace and content creation tools. OKX Ventures invested $1.1 million in Celestial in September 2021.
On February 27, an advertising campaign for the project took place on the Web, where it was positioned as associated with OKX. At the same time, users began to complain about sharp fluctuations in the price of token CELT. In an announcement dated February 28, the exchange said that it has nothing to do with the game project and the behavior on the part of the developers when they point to a non-existent connection with OKX is unacceptable.
The cryptocurrency exchange identified five addresses profiting from the asset trading and froze the USDT 714,000 on them. During negotiations with Celestial's team, the exchange got them to agree to refund another 1.3 million USDT.
Adding 1 million USDT to these amounts on its own behalf, OKX said it will use the 3 million USDT to reimburse users who suffered losses during CELT token trading from February 25 to 28. More precise information will be released within the next two days.
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