Copy link
Increase text size
Decrease text size
Link copied

Margin lenders on Poloniex lost 1,800 BTC due to flash crash in CLAM market

Source: Poloniex (Twitter)

Fri, 07 Jun 2019, 10:18 am UTC

Circle-owned cryptocurrency exchange Poloniex has announced margin lenders on its platform recently lost around 1,800 BTC (approximately $13.5 million) due to a “severe price crash.”

In an online post dated June 06, the exchange said that a sudden, severe price crash in CLAM led to “a number of margin loans to default, resulting in a roughly 1800 BTC generalized loss in the Poloniex BTC margin lending pool.”

Due to the incident, Poloniex said, the principal of all active BTC loans has been reduced by 16.202%. The exchange estimates the incident to have affected 0.4% of its users.

“Lenders impacted will see the reduction in their accounts when they next log in. All of the defaulted borrowers’ accounts were frozen after they defaulted and will remain frozen until they repay their loans and comply with Poloniex terms of service,” Poloniex said.

Further explaining the reasons behind the incident, it said that the “velocity of the crash and the lack of liquidity in the CLAM market made it impossible for all of the automatic liquidations of CLAM margin positions to process as they normally would in a liquid market.”

Moreover, as a considerable amount of the total loan value was collateralized in CLAM, borrowers’ positions, as well as their collateral, lost most of their value simultaneously, it said.

Last month, Poloniex resumed its services in Washington after receiving a new license from the Washington State Department of Financial Institutions. Meanwhile, it stopped offering trading in nine cryptocurrencies in the United States, citing the lack of regulatory clarity in the country.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $9,227.51 (-0.01%)
  • Ethereum (ETH) $238.65 (-0.38%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $235.02 (-0.52%)
  • Bitcoin SV (BSV) $184.39 (+1.15%)
  • Bitcoin (BTC) $9,227.51 (-0.01%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft