Ethereum Exchange Reimburses Customers After ‘Flash Crash’ Drop to 10 Cents

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Tom Ciccotta

An Ethereum exchange is reimbursing customers after a “flash crash” briefly dropped the cryptocurrency from over $300 to around 10 cents last week.

The cryptocurrency exchange GDAX experienced a massive decline in the price of Ether, the currency for the Ethereum Project. The price dropped from over $300 to around 10 cents in a matter of seconds before rebounding back. The “flash crash” was the result of a multimillion-dollar market sell order, according to the executives behind GDAX.

“Our initial investigations show no indication of wrongdoing or account takeovers. We understand this event can be frustrating for our customers. Our matching engine operated as intended throughout this event and trading with advanced features like margin always carries inherent risk,” GDAX Vice President Adam Adam White wrote in a blog post.

Some users on Reddit claimed that they lost sums of money ranging from $3,000 to $9,000. GDAX announced in a blog post that they will reimburse users who lost money during the crash and honor those who made automatic orders for Ethereum at a price of 10 cents.

We will establish a process to credit customer accounts which experienced a margin call or stop loss order executed on the GDAX ETH-USD order book as a direct result of the rapid price movement at 12.30pm PT on June 21, 2017. This process will allow affected customers to restore the value of their ETH-USD account to the equivalent value of their ETH-USD account at the moment prior to the rapid price movement.

GDAX, which is run by the firm behind the popular U.S. digital currency exchange, Coinbase, seeks to give institutions and professionals the ability to exchange digital currencies in high volumes. “GDAX offers institutions and professionals the ability to trade a variety of digital currencies like Bitcoin, Ethereum, and more on a regulated U.S. based exchange,” the site’s description reads.

Tom Ciccotta is a libertarian who writes about economics and higher education for Breitbart News. You can follow him on Twitter @tciccotta or email him at tciccotta@breitbart.com

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