Five investors filed a class action lawsuit against the company Payward Inc. This company owns the American stock exchange Kraken. What is the problem?
On the night of 7 may (Sunday) may 8 (Monday) on the stock exchange Kraken has been DDOS-attack. About one hour the exchange website was not working. But trade has not been stopped. It is noteworthy that shortly before the "denial of service" was put up a large sell order ether (ETH), though on the market! The warrant provoked "a cascade of liquidations of long positions." This fact causes some confusion. Many people know that great players never gain the position of market orders. This leads to a disadvantageous entry point when the price just flies in one direction or another.
Representatives of the exchange claim that they conducted their own investigation of the incident and saw no evidence of a coordinated attack or market manipulation. What is DDos attack and mentioned a warrant for DDos attacks that occurred almost simultaneously, Kraken called "a mere coincidence".
During the attack the price of ether (ETH) at cryptocurrency exchange Kraken has dramatically fallen, at some point falling from $90 to $26.
Many traders have lost huge sums. If we consider only these five traders, they lost a total of 3 414 078 ETH or 329 000 $(at the rate of ether to the attack).
Then, the exchange has apologized for the losses incurred by the users, but said that "can not compensate for traders the result of what is happening in the market events or losses due to the inevitable DDoS attacks".
Let's see what the outcome of this story. But once again, confirms the truth that centralized exchanges are not safe. Investors ' money can suddenly disappear, and no one compensates for the losses incurred.
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How is 3414078ETH=$329000?
Before the collapse of the exchange rate was 96,32 $