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A group of users are working to seek justice through legal action following the May Binance incident

July 14, 2021 - Around 2 mins mins to read

A group of users who were made aware of the failure of the Binance exchange on Jan.

Anand Singhal, a freelance programmer, has been around since he was 13. When Singhal started researching the price and saw an impending pullback, he tried to get out of his position but couldn’t make it in time.

Due to the rapid drop in the price of Bitcoin and other cryptocurrencies at the time, Binance was unable to keep up with the large number of transactions at once as hundreds of thousands of traders tried to do the same in the market. Binance had a problem and was unable to process their positions for more than an hour.

As a result, Singhal and other traders lost money. And now they are demanding justice. According to the Wall Street Journal, at least 700 users are looking for their coins back from Binance in France. And in Italy, many users face Binance because of the same problem.

Incidents happen often

However, these incidents are nothing new to the world of crypto exchanges. Coinbase, one of the largest and most regulated exchanges, also faced similar problems. In fact, Coinbase was struggling with Binance at the same time. Robinhood, a free exchange, also suffered a failure and was fined $ 70 million by the Financial Industry Regulatory Authority (FINRA).

But Binance is a “headless” exchange and as such it will be difficult for these users to claim their losses. Binance said it reached out to most of the affected users to offer compensation. In any case, disgruntled users still managed to file complaints with the Hong Kong International Arbitration Center.

The news comes at a time when Binance is facing heightened regulatory scrutiny by world governments, some of whom last week blocked payments to Binance in the UK and Europe. To further complicate matters, Binance also received warnings from securities regulators in the UK, Japan, the Cayman Islands and Thailand just last month.

Teacher

According to News.Bitcoin

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Market

A group of users are working to seek justice through legal action following the May Binance incident

A group of users who were made aware of the failure of the Binance exchange on Jan.

Anand Singhal, a freelance programmer, has been around since he was 13. When Singhal started researching the price and saw an impending pullback, he tried to get out of his position but couldn’t make it in time.

Due to the rapid drop in the price of Bitcoin and other cryptocurrencies at the time, Binance was unable to keep up with the large number of transactions at once as hundreds of thousands of traders tried to do the same in the market. Binance had a problem and was unable to process their positions for more than an hour.

As a result, Singhal and other traders lost money. And now they are demanding justice. According to the Wall Street Journal, at least 700 users are looking for their coins back from Binance in France. And in Italy, many users face Binance because of the same problem.

Incidents happen often

However, these incidents are nothing new to the world of crypto exchanges. Coinbase, one of the largest and most regulated exchanges, also faced similar problems. In fact, Coinbase was struggling with Binance at the same time. Robinhood, a free exchange, also suffered a failure and was fined $ 70 million by the Financial Industry Regulatory Authority (FINRA).

But Binance is a “headless” exchange and as such it will be difficult for these users to claim their losses. Binance said it reached out to most of the affected users to offer compensation. In any case, disgruntled users still managed to file complaints with the Hong Kong International Arbitration Center.

The news comes at a time when Binance is facing heightened regulatory scrutiny by world governments, some of whom last week blocked payments to Binance in the UK and Europe. To further complicate matters, Binance also received warnings from securities regulators in the UK, Japan, the Cayman Islands and Thailand just last month.

Teacher

According to News.Bitcoin

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

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