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Investors demand compensation from Binance after ill-timed system problems

15 Nov, 2018
by Matthew Kim
News
Investors demand compensation from Binance after ill-timed system problems

In the aftermath of a major market crash, Binance investors and traders are demanding compensation for their losses due to untimely technical issues on the exchange. 

At 2:00 AM UTC on the 14th of November, Binance underwent a scheduled system update. These system updates happen often and are nothing out of the ordinary. Binance soon announced that their maintenance was complete, and trading was set to resume at 9 AM UTC. 

Unfortunately, after the reopening of trading, a tsunami of tweets informed Binance that their systems were failing. People were getting constantly kicked out the exchanges and could not see their sell or buy orders on the platform. Binance quickly responded that there was a “balance synchronization issue” and warned people not to place their orders multiple times. Yet, as expected, confused people placed accidental orders due to the historical order delays.

To compound the problems, the Binance problems coincided with a major market crash where more than $20 billion was wiped off the market within several hours. Desperate investors and traders tried to convert their cryptocurrencies into stablecoins on Binance but struggled with the system problems.  

Beloved CEO of Binance, CZ, apologized on Twitter for the technical problems. He revealed the source of the problems and expressed intent for future caution.

However, many were not satisfied with an apology. Many investors and traders who had lost money remain enraged and blame their losses on Binance. Thus, many are demanding compensation for their losses.

Read more about:Binance

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