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Poloniex Pledges to Reimburse Flash Crash Losses, Victims Displeased

Published 08/24/2019, 11:44 AM
Updated 08/24/2019, 12:01 PM
Poloniex Pledges to Reimburse Flash Crash Losses, Victims Displeased

When a financial system like the crypto market lacks liquidity, a crash becomes inevitable. This was the case at the margin trading marketplace hosted by U.S.-based crypto exchange Poloniex toward the end of May, when the value of a lesser-known crypto asset, CLAM, experienced a sudden, sharp crash. This resulted in the generalized loss of approximately 1,800 Bitcoins (BTC).

In what is its second attempt to make things right, Poloniex has said recently that, beginning later in August, it will start recovering the losses of the margin traders. The exchange will begin the trading fee holiday by crediting the affected users with the trading fees they've incurred since July 6, adding that the users in question "will see a repayment tracker in your account soon." The first step of recourse from the exchange came on June 14, when it said it had distributed 180.73606744 BTC proportionately across affected lenders.

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