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Binance system outage sparks outrage as traders lose millions

Disruptions and crashes in cryptocurrency exchanges have resulted in losses for investors trying to get out on time. While Binance has been proactive in neutralizing such situations, numerous investors are reported to seek rewards for damages due to the exchange’s inoperability.

Speaking to CNBC, A Binance spokesperson highlighted the company’s policy promising to offset actual business losses due to internal or system issues, but noted:

“We do not cover ‘what could have been’ hypothetical situations, such as unrealized gains.”

In some cases, when investors sought compensation in connection with such an outage, Binance’s customer service team reportedly offered a low refund while declining to comment on “pending legal issues.”

On February 11, Binance had to temporarily go offline after suffering an outage due to a 60% increase in its web traffic. As a result, the exchange suspended “deposits, withdrawals, spot and margin trading, P2P trading, OTC Portal trading, savings and redemption, as well as asset transfers from subaccounts, margin accounts, futures accounts, and fiat wallets.”

Binance has recently drawn the attention of regulators around the world regarding the complexities of trading and licensing. Binance CEO Changpeng Zhao has declared his intention to obtain a license in all jurisdictions.

Zhao publicly offered the position of CEO of Binance to a person “with strong regulatory experience.” Nowadays, Binance faces regulatory scrutiny from authorities around the world, including the Netherlands, Malaysia, and South Korea.

In order to control damage, Binance has proactively started to implement restrictions to reduce the chances of high-risk trading, from limiting high-leverage trading to completely restricting derivatives trading.

Keep reading:

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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