Cointelegraph Team
Cointelegraph
Cryptocurrency futures and options exchange Deribit says it will use its own money to refund users affected by an exchange rate miscalculation.
In a tweet on Nov. 1, Deribit recognized its role in the error, which occurred on Thursday and resulted in Bitcoin (BTC) trading at around $7,700.
Deribit: crash caused by “outlier” value
This, in turn, caused traders to be paid a lower price for BTC/USD sells, with Deribit calculating the losses at $1.3 million.
Deribit Bitcoin futures chart. Source: TradingView, Twitter
“Deribit will reimburse over $1.3 million in losses from the BTC index calculation data issue around 21:00:00 UTC on October 31, 2019,” it confirmed.
The exchange added:
“The Deribit Insurance fund will not be used to cover these losses, but compensation will be covered by Deribit.”
In a further message, staff explained that issue came from an erroneous value which should not have been used in calculating the BTC/USD rate.
“An outlier should have been excluded from the index, therefore it's refunded by the firm,” it reads.
Coinbase Pro quiet on order cancellations
At the same time as Deribit, Coinbase Pro, the high-volume trading arm of United States exchange Coinbase, also appeared to encounter problems.
According to various accounts including by well-known trader Jacob Canfield, the exchange began automatically cancelling swathes of orders on Thursday.
Canfield described Coinbase Pro’s order book as having “glitched out,” with an official response still to surface.
Bitcoin saw periods of volatility on Thursday, reaching a high of $9,365 before reversing and abruptly dropping by around 2.5% as the exchange issues hit markets.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Vitalik Buterin slams controversial gambling project ZKasino following scam allegations
Ethereum founder Vitalik Buterin took to Warpcaster, a new type of social network, to condemn ZKasino, a decentralized gambling platform based on Layer 2 Ethereum protocol zkSync.
Starknet jumps 2% after notice inviting specific groups to claim STRK airdrop
Starknet Foundation addressed the groups within the STRK community that were unable to receive the token’s airdrop during the first round. The Layer 2 chain organized an airdrop event in February.
XRP price capped at $0.55 despite retail holdings nearing all-time highs
Ripple price (XRP) failed to break resistance at $0.55 early Wednesday as traders continue to digest Ripple’s recent response to the Securities and Exchange Commission’s (SEC) allegations of illegally selling XRP as a security.
Binance founder Changpeng Zhao could face three-year jail time
US prosecutors are requesting Binance founder and former CEO Changpeng Zhao (CZ) to serve a three-year jail time, according to a Reuters report published Wednesday.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?