PhilippinePdax, a cryptocurrency exchange, recently suffered a costly technical failure-resulting in Bitcoin trading at 300,000 Philippine pesos (about 6,000 US dollars), 88% lower than the current price.
According to local news media Bitpinas, during the melee, some users managed to buy Bitcoin at these ridiculously low prices and quickly removed Bitcoin (BTC) from the exchange’s wallet until an error was discovered. The actual amount of BTC hoarded at the gift price of $6,000 is not yet known.
However, the Philippine Digital Asset Exchange (Pdax) now requires users to return bitcoin or face legal proceedings. Since then, for this reason, the exchange shut out several of its clients. But traders have found nothing.
“Almost 24 hours later, they sent me a request letter and SMS asking me to return the BTC, otherwise they might be forced to take legal action against me.” A trader said that he bought at a low price and was sure he was in The purchase process did not violate the laws of any trading platform.
Rafael Padilla, a lawyer representing one of Pdax users, was asked to return BTC and lock his account. He said:
According to applicable laws, cases settled, and of course, according to Pdax’s own terms and conditions/user agreement, the trade transactions of our customers are legal.
Padilla stated that Pdax chose to lock users out of their accounts because it cannot unilaterally cancel transactions.
Starting around February 16, the exchange began to suffer from the suspension and blamed it on “unprecedented levels of trading and volatility.” An official statement from Pdax CEO Nichel Gaba stated that 95% of accounts have been restored, but according to reports, some users are still locked out of their accounts.
On February 23, Gaba said at a virtual press conference: “Understandably, many users are frustrated because they can buy Bitcoin orders that they think they have at a very low price. But unfortunately, the exchange You don’t own the underlying bitcoin at all, so, unfortunately, there is nothing to buy or sell at all.”
What do you think of the technical failure of Pdax? Let us know in the comments section below.
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