Poloniex loses 1,800 BTC in margin lending pool, recovers funds from users

07 Jun, 2019
by Ryan Boltman
Exchange
Poloniex loses 1,800 BTC in margin lending pool, recovers funds from users

Poloniex has released a statement regarding the loss of 1,800 Bitcoin due to a severe price crash in the CLAM market caused a number of margin loans to default

The announcement explains that on May 26, the CLAM market caused a number of margin loans to default following a price crash, the generalized loss in the Poloniex BTC margin lending pool was 1,800 BTC.

Poloniex has taken steps to reduce the principle of all active BTC loans by 16.202% following the loss. According to Poloniex, this affects only 0.4% of Poloniex users. Lenders can see the reduction from their accounts when logging in. defaulted borrowers will have their accounts frozen until they repay their loans and comply with Poloniex terms of service. 

Following the event which now sees lenders suffering for defaulted borrowers, Poloniex has taken steps to remove an additional 4 assets from margin trading, including CLAM, BTS, FCT, and MAID. 

The exchange also said they would be looking into extra measures going forward to avoid similar situations happening in the future. 

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Read more about: Poloniex

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