Cryptocurrency Traders Seek Damages From Binance After A Major Outage Cost Them Millions

Bitcoin and Ethereum, both have had their biggest one-day drops from the time of March 202. A rough $1 trillion in value has been lost by the entire crypto market. When prices kept on falling and then fell some more below a certain point, then Ahmed got himself losing his position. His personal losses are something around $6 million.

Cryptocurrency Traders Seek Damages From Binance After A Major Outage Cost Them Millions

“This loss was not fair,” Ahmed, told the media. Of course, he is distressed by all this. “This is something which was out of my control.”

Binance’s customer service team however stepped up and they have given Ahmed a very low, to the point that it can be called the absurd low offer of compensation. They have said that “Our policy is that of a fair one. We can very well be compensating users who have experienced actual trading losses caused by the issues in the system, We do not take under hypothetical ‘what could have been’ situations such as unrealized profits.”

Binance however was not alone in all this. It was not the only crypto exchange to face some problems in its services. Coinbase users were also on the same boat and temporarily unable to get access to its site. Bitcoin has gone down as much as 30% to nearly $30,000 that day. It has recovered from then to $45,790.

Binance is actually the first company in the world that has grown to any size in any industry — let’s not forget about the financial industry — and there is no regulation to be followed by them either. They have no home, they have no headquarters to have a smooth sailing they do not have any office either. The only place in which Binance is said to have any kind of jurisdiction. That is also in a Hong Kong international arbitration court.

Individually, all the claimants are to be set back an estimated $65,000. To cover up on all those costs, Liti Capital has made a promise to give out a minimum of $5 million in funding. To add to the problem face by Binance, the company also lost its U.S. chief Brian Brooks. He was formerly acting head of the Office of the Comptroller of the Currency. This was a US banking regulator.

The company has made a statement. It was founded by Zhao in China four years ago and quite recently they have accepted the fact that it was pivoting to become a regulated institution. The matter is nothing but seriously considered among the cryptocurrency Industry. What is going to happen in the future is yet to be seen.