Cryptocurrency exchange Kraken is providing partial damages to customers affected by the $ 700 Ether (ETH) price collapse early last week. A decrease in the rate by 2/3 of the original values triggered the triggering of stop orders and the liquidation of margin positions, due to which some clients, according to them, lost all their savings.
Kraken, for its part, said its system remained fully operational during this time, and the sharp depreciation was driven by user sales.
“If Kraken customers cannot prove that the exchange traded against them during the instant crash, I see no way to compensate them,” wrote Coinmetrics analyst Kevin Lu.
ETH rate dynamics on Kraken and other exchanges
The company, however, said it may consider supporting affected users, although it has ruled out a rollback of full deals. Subsequently, clients who turned to the exchange really began to report receiving compensation, the amount of which varies within 5-50% of the lost amount, writes New Money Review.
Kraken CEO Jesse Powell, commenting on recent events, said:
“All transactions were between users, and the order matching engine worked as expected. We are putting money out of our pocket to help some people for customer retention reasons. ”
Powell also noted that the exchange considers situations with large losses on an individual basis, while in smaller cases, compensation is credited automatically. The amount of compensation is calculated based on the ether price, to which it dropped at the same time on other exchanges, and payments are made in the form of traditional currency and credits to pay commissions. Kraken is not going to accommodate users with unreasonable demands, Powell added.
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