Dragonfly Partner Disputes OKX CEO’s Explanation for 10/10 Crash

OKX CEO Star reiterated Bitcoin’s drop occurred before USDe depegging, highlighting leverage effects, and clarified financial ties with Dragonfly to address misinformation amid dispute over crash causes.

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Summary

On Jan. 31, OKX CEO Star responded to CZ’s tweet, asserting Bitcoin began declining 30 minutes before USDe’s depeg on October 10 and that heavy leverage intensified the sell-off. Star further clarified that venture capital firm Dragonfly never invested in OKX, and that OKX’s investment in Dragonfly occurred before partner Haseeb joined the firm. The remarks come amid an ongoing dispute with Haseeb, who previously rejected Star’s attribution of the crash to Binance and Ethena, citing tariff-related panic as the primary cause.

Terms & Concepts
  • USDe: A stablecoin designed to maintain a peg, typically to the US dollar, which can experience dislocation during market stress.
  • Leverage: The use of borrowed capital in trading to increase potential returns, which can also magnify losses during market downturns.
  • Depegging: The event in which a pegged asset, such as a stablecoin, loses its fixed value relative to its target currency or asset.