Binance crypto exchange crash sparks outrage as traders lose millions

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The outages in crypto exchanges have resulted in losses for investors trying to get out on time. While Binance has been proactive in neutralizing such situations, many investors have reportedly sought damages due to the inoperability of the exchanges.

Speaking to CNBC, a Binance spokesperson highlighted the company’s policy that promises to compensate for actual trade losses due to system or internal issues, but noted:

We do not cover hypothetical situations which could have been situations such as unrealized profits.

In some instances, when investors sought compensation in connection with the said outage, Binances’ customer service team reportedly offered a small discount while declining to comment on outstanding legal issues.

On February 11, Binance had to log out temporarily after suffering an outage due to a 60% spike in its web traffic. As a result, the exchange suspended deposits, withdrawals, spot and margin transactions, P2P transactions, OTC portal transactions, savings and redemption, as well as asset transfers from under. -accounts, margin accounts, term accounts and fiduciary portfolios.

Related: Binance CEO Wants To ‘Work With Regulators’ As Stock Market Grows

Binance recently gained the attention of regulators around the world regarding the intricacies of trading and licensing. Binance CEO Changpeng Zhao has declared his intention to obtain a license in all jurisdictions.

Zhao publicly offered the position of CEO of Binances to someone with strong regulatory background. Currently, Binance is under regulatory review by authorities around the world, including the Netherlands, Malaysia and South Korea.

In an effort to limit the damage, Binance has proactively started implementing restrictions to reduce the chances of high-risk trading, ranging from limiting high-leverage trading to completely restricting derivatives trading. .

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