Crypto exchange requires customers to return bitcoins they bought for $ 6,000 due to a failure

PDAX, a regulated Philippine cryptocurrency exchange, was experiencing an outage in its system, which caused some users to buy bitcoins significantly below the market price. Now the exchange is demanding the return of these assets back, reports the Bitpinas portal .

Hard-to-explain phenomena began to occur on PDAX on February 16, when some users began to report an unexpected increase in account balances, while others – on the contrary, a decrease. In one case, a user discovered 40 billion Philippine pesos, or about $ 820 million, in his account.

At the same time, some began to pay attention to the sudden drop in the price of bitcoin to 300,000 pesos ($ 6,150), while the average cryptocurrency traded in the market for about $ 50,000. Soon PDAX announced that it was carrying out emergency technical work, at the same time assuring users that their funds were safe …

One Reddit user reported that he saw an opportunity to buy bitcoin at an unusually attractive price and did it “for a small amount.” He also managed to withdraw the cryptocurrency to his own wallet, but after 24 hours PDAX sent him an email and SMS demanding to return the bitcoins, citing “unreasonable accumulation of assets” and writing the debt to his account.

“Our client’s transaction was legitimate in accordance with applicable laws, existing precedents and, of course, PDAX’s own rules and user agreement,” said the lawyer representing the user. – Our client had sufficient funds to cover this transaction. The transaction has been executed, completed and, therefore, should be considered completed. PDAX cannot rollback transactions unilaterally. “

The exchange announced the restoration of access for at least 95% of users, but many argue that they still cannot use their accounts. How many customers were able to buy bitcoins at a reduced price and how much to withdraw them is unknown.

“On February 16th, our system experienced an unprecedented influx of transactions that resulted in serious performance issues. PDAX transactions have grown 70x in recent months. Other exchanges such as Coinbase and Kraken have also experienced interruptions recently, the company said. – The incident resulted in one unsecured claim affecting the accounts of other users. We have identified and canceled the order and the subsequent chain of unsecured orders. We are in the process of returning the affected accounts to their pre-incident status. ”

PDAX CEO Nichel Gaba admitted that users are likely to be upset about the canceled deals. “However, the bitcoins used in them were not at the disposal of the exchange, so nothing could really be bought or sold,” he added.

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