Disgruntled Bitcoin Traders Come Down On Binance Over Massive Losses Incurred In May Crash

Disgruntled Bitcoin Traders Come Down On Binance Over Massive Losses Incurred In May Crash
фото показано с : zycrypto.com

2021-7-15 20:50

Binance customers who claim to have suffered huge losses when binance froze on May 19 while BTC price was plunging are now going after the exchange for damages, the Wall Street Journal reports. BTC dropped from a 24-hour high of around $43,500 to $30,000.

BTCUSD Chart By TradingView

Thousands of customers reportedly were unable to exit their leverage positions, leading to the liquidation of their entire funds. Many of the affected traders took to social media platforms including Twitter and Reddit to complain about Binance’s lack of transparency.

The traders have since banded together, to force Binance to take responsibility for liquidating their positions while they were unable to access their accounts and take any favorable action.

When the price crash began, traders naturally wanted to capitalize on the massive sell-off and buy the inversely leveraged tokens. According to this post on Reddit, some of the tokens were going down instead of up as expected.

In response, Binance said that the losses occurred due to an algorithm-based rebalancing mechanism that was responding as designed, adding that customers using its leverage products have been warned in advance. The exchange’s leverage can go as high as 125 to 1, which makes it as attractive as it is risky for traders.

Hard To File Complaints

According to their lawyer Aija Lejniece, unifying the traders’ complaints will make it easier for them to be taken seriously. Lejniece also said that for the average trader, Binance has made it very hard to seek recourse.

“By banding together the group can get full compensation for traders’ losses.”

Among the top challenges of lodging complaints with the exchange is its vague definition of its physical headquarters. Binance CEO, Canadian Changpeng Zhao has yet to respond to queries touching on the subject.

Binance was assumed to be registered in the Cayman Islands up until recently when the Island’s regulatory authorities red-flagged its operations inside its jurisdictions as unauthorized.

Binance Accused of Attempting To Silence Traders

One of the traders, Anand Singhal who lost a total of $74,000 meant to go towards his master’s degree said that when he filed a compensation claim form, Binance offered to give him a three-month upgrade to VIP status instead of actual compensation.

Singhal added that he feels cheated by the exchange, to a point of completely giving up on trading.

In June, trading volume on Binance hit $662 billion, almost ten times its volume in June 2020, according to CryptoCompare data. In addition to spot trading, and peer-to-peer trading (Binance DEX), Binance offers derivatives trading as well and stocks as tokenized assets.

The Binance app is also one of the most downloaded applications in the financial markets.  In Britain, the app has so far been downloaded 1.8 million times according to Sensor Tower data.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Binance Coin (BNB) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $562.5
Капитализация $0 Rank 99999
Цена в час новости $ 304.22 (-100%)

binance losses may btc damages street exchange

binance losses → Результатов: 106


Why BitMEX is Back Under Scrutiny Following Bitcoin’s Rejection at $10.4k

Following Bitcoin’s brutal dump at $10. 4k, the inquest into what went wrong is taking place now. Theories regarding whale manipulation consistently make the rounds during such times. But a more tangible explanation alleges that manipulation at derivatives trading platform BitMEX contributed heavily to the losses sustained yesterday.

2020-6-4 16:36


Binance Coin Price Analysis BNB/USD: Consecutive Losses

Binance Coin has a bearish short-term and medium-term trading bias The four-hour time frame shows that a bullish inverted head and shoulders pattern is still present A loss of the $16.00 level would be extremely bearish for the BNB/USD pair Binance Coin remains under pressure alongside the broader cryptocurrency market, with the BNB/USD pair trading […] The post Binance Coin Price Analysis BNB/USD: Consecutive Losses appeared first on Crypto Briefing.

2019-11-22 21:12


Binance Coin Rollercoaster Continues: BNB Records Moderate Gains As BTC And Other Altcoins Continue Consolidating

The weekend was characterized by little volatility. Bitcoin and altcoins recorded some gains but corrected downwards in no time. On Monday, cryptocurrencies started the week with modest losses. Bitcoin and other coins are consolidating at press time, but for Binance token (BNB) which is recording slight gains among the top 10 cryptocurrencies.

2019-7-23 17:06


Are BNB’s gains and XRP’s losses a reflection of the market demanding rational, transparent monetary policies?

On the road to create the perfect cryptocurrency that records the highest adoption rates, some players have gone off track from its foundational “transparent” upbringing. This was duly noted by many in the cryptocurrency community and proven by a graph representing cryptos’ liquid market cap.

2019-7-17 18:30