Poloniex Exchange Lost Around $13.5 Mln’s Following A Flash Crash.

Poloniex Exchange Lost Around $13.5 Mln’s Following A Flash Crash.

2019-06-07 | Eddy Morgan

Poloniex Exchange Lost Around $13.5 Mln’s Following A Flash Crash.

In line with a recent official 'web-blog post' published, marginal lenders on renowned cryptocurrency exchange ‘Poloniex’ have lost about $13.5 Mln’s due to a flash crash.

Poloniex announced that earlier on 26th May, a severe value crash within the clams [CLAM] market led to marginal loans losses summing roughly to around 1,800 Bitcoin’s [BTC], or $13.5 Mln at the time. The incident affected 0.4% of all users and resulted within the reduction of all active BTC loans by 16.202%.

The exchange then froze all of the defaulted borrowers’ accounts and can keep them frozen till the borrowers repay their loans. Poloniex additionally  added that it'll refund the funds to affected lenders as long as it recovers the lost money. Poloniex added that this recent crash occurred due to several reasons, and explained:

“The rate of the crash and the lack of liquidity within the CLAM market made it impossible for all of the automated liquidations of CLAM margin positions to process as they formally would in an exceeding liquid market. Additionally, a significant quantity of the entire loan price was collateralized in CLAM, therefore both the borrowers’ positions and their collateral lost most of their value at the same time.”

Also last month, Poloniex 'halted' trading in 9 coins to customers within the U.S.. The exchange declared that the decision was intended by the uncertain regulative environment within the country, “Specifically, it’s impossible to be certain whether the United States regulators can think about these assets to be securities.”

Earlier in January, independent analysts at ICORating 'gave' around 16% of the world’s biggest cryptocurrency trading platforms an A rating, together with Poloniex [A-] among the top 3 most secure exchanges operating globally.

ICORating assessed about 135 'cryptocurrency' trading platforms, all of whose daily trade price reportedly exceeds $100,000 USD, on the premises of 4 security categories: user account security, registrar and domain security, web 'security' along with DoS attack protection.

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