LUNA deals that produced 30-40x profit have been reversed by Crypto.com
Crypto.com halted trading on May 13 after an internal tool discovered the system was reporting false LUNA market pricing.
When Terra’s death spiral saw LUNA and stablecoin UST prices plummet beyond all hope of recovery, Crypto.com was one of the only crypto exchanges to keep LUNA trading open. Some customers were able to make 30-40x profit on LUNA transactions because of a bug in Crypto.com’s mobile app at the time.
After an internal tool discovered the system was reporting wrong pricing for LUNA owing to some glitch on Friday, Crypto.com unexpectedly prohibited customers from trading. The CEO of Crypto.com, Kris Marszalek, gave information about a problem that let customers get away with big winnings just as Crypto Twitter began voicing concerns about transaction reversals on the exchange.
By Marszalek’s count, those who traded “in those 59 minutes” are entitled to a repurchase option at the current market price of $0.0004685 for LUNA tokens. Consider the fact that LUNA hit its all-time high market price of a little under $120 on April 5.
Marszalek made a point of noting: There were many external causes (tick size changes owing to the Luna death spiral, withdrawals and the whole Luna chain ceasing) which collectively led to price dislocations that should have been identified by index pricing, but were not.”
Marszalek told that “all user accounts have been re-enabled” after a day of investigation into the LUNA trading catastrophe.
As a gesture of goodwill, Crypto.com has provided $10 worth of its in-house cryptocurrency Cronos (CRO) to impacted investors in exchange for the reversal of the LUNA transactions.
Validators for Terra’s blockchain formally paused the network to avoid governance assaults when the price of LUNA fell by more than 99 percent.
A new patch to prevent additional delegations is anticipated to be implemented by the validators before the network may be restarted.
Also Read: A Major Outage At Coinbase Is Being Reported In The Middle Of The Ongoing Crypto Bloodbath