Kraken Margin Traders Demand Damages
Kraken exchange today withstands attacks of users who yesterday due to an emergency failure could not enter their account and lost funds on leverage transactions
This is a risky type of investment. However, if it were not for the failure, most users would be able to return their money by closing their positions on their own. That didn’t happen. During the outage, the exchange was unavailable, and when the market moved into the crane zone on February 22, more than $24 million was lost.
February 22 can be safely considered a tragic day for the cryptosphere. Overall, Bitcoin and Ethereum fell in price by almost one-third. BTC slipped by $9,500 and ETH was trading at $400 cheaper.
At Kraken the losses were even higher. Due to cascading liquidations and poor support, Bitcoin collapsed by 22% and cost just over $45,000, and the price of ETH fell even lower – by 64%. The coin was traded on the stock exchange for $700.
The flash memory failure on the stock exchange has ruined traders. On Reddit (r/Krakensupport) many wrote that they had lost most of their savings. There were even thoughts of suing the exchange.
There are even those who have remained owed to the stock exchange. And let the sum of only 120 dollars, but if the situation arose because of the exchange, why should the balance of users should go into the negative?
Despite all the calls of users, the exchange refused. Kraken is not going to make damages. Some other platforms, which yesterday faced the elimination of positions with margins, acted in the other way. For example, Nexo said it would cover customer losses.
This is not the first major February liquidation. The first occurred on February 15. On this day, many positions worth up to $1.89 billion were closed on Binance stock exchange. It’s time to check your account.