Bitfinex, currently the largest cryptocurrency exchange in terms of handling the daily volume, is on the news again after facing some operational glitches. Today, the company’s social media platforms were flooded with margin trading customers complaining that their orders had been liquidated by the trading platform, at the bottom prices.
Though many are claiming that the exchange is responsible for this, the exact reason is not yet known as Bitfinex did not release any official statement addressing the issue.
The angry traders took to Twitter and Reddit to share their experiences. According to the complaints, even stop-loss orders were liquidated at a much lower price than they should have been.
If it is an issue with the platform, and chances are it is, Bitfinex should make a prompt refund to the affected clients.
The platform encountered some huge flash crash issues as well in the past 24 hours. The affected currencies include NEO, OMG, and ETP. The price of NEO went down from $37 to $3, and the margin traders of those tokens were severely hit as stop-loss did not work.
You need to make this right – I just went from $100k to -$30k … refunds need to be made and owners made full. This is unacceptable.
— Brian (@biop3rl)
Lately, Bitfinex has been involved in a number of controversies. A few days back, the platform announced a attack on the platform which began during the scheduled maintenance earlier that day. But the firm did not bother to provide an update afterwards.
Also, amid the recent , Bitfines’s name was on headlines. As pointed out by the German news website T3n.de, Bitfinex CEO Jan Ludovicus van der Velde and Chief Strategy Officer Phil Potter are also the CEO and the director of Tether, respectively. The closeness of the operations of the two firms raises many questions which are yet to be answered.
Last year the platform also endured the second largest hack on the cryptocurrency industry which resulted in the loss of $72 million worth of customer money. Afterwards, the platform had to introduce the BFX token to compensate the customers.
Bitfinex should take steps to address all the current issues immediately. The opaque operation of the platforms is raising more and more suspicions as any manipulation on the largest cryptocurrency exchange will affect the entire crypto economy.
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