{"id":19583,"date":"2019-08-13T17:17:28","date_gmt":"2019-08-13T17:17:28","guid":{"rendered":"http:\/\/ci027cfe78100b2697"},"modified":"2019-08-13T17:17:28","modified_gmt":"2019-08-13T17:17:28","slug":"poloniex-reimburses-lenders-affected-by-crash","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/poloniex-reimburses-lenders-affected-by-crash","title":{"rendered":"Poloniex Reimburses Lenders Affected by Crash"},"content":{"rendered":"
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Cryptocurrency exchange Poloniex is moving forward with compensation for lenders who lost funds in a May 2019 \u201cflash crash.\u201d The crash of digital token CLAM, which fell by almost 80 percent within an hour, triggered the failure of safety measures in Poloniex\u2019s automated liquidation system and wiped 1,800 BTC (about $13 million at the time) of lender capital.<\/p>\n

The exchange paid back 180 BTC to the first batch<\/a> of lenders affected by the crash in June 2019, but it\u2019s planning to use a different method to repay the rest. <\/p>\n

The exchange will refund trading fees to the affected users until losses are recovered, according to a published blog post<\/a>. <\/p>\n

\u201cEvery time you pay a trading fee, we will convert the fee to BTC and then credit you those fees each day,\u201d according to the post. \u201cYour first credit will include all the trading fees you have paid since June 6, 2019.\u201d<\/p>\n

Poloniex runs a peer-to-peer margin trading system where lenders send their bitcoin to a pool so that others can trade with it. For their troubles, lenders are repaid interest, while borrowers get a bigger war chest to trade with.<\/p>\n

At the time, the exchange blamed<\/a> the flash crash on the high rate of sell orders and the low liquidity within CLAM\u2019s margin trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

The exchange is working to compensate those who lost 1,800 BTC when a flash crash led to failure in its automated liquidation system.<\/p>\n","protected":false},"author":3435,"featured_media":19584,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[3084,424,3085],"class_list":{"0":"post-19583","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-circle","9":"tag-crash","10":"tag-poloniex"},"author_data":{"id":3435,"name":"Jimmy Aki","nicename":"jimmy-aki","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/jimmy-aki-promo-image-96x96.jpg"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/poloniex-reimburses-lenders-affected-by-crash.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/19583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3435"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=19583"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/19583\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/19584"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=19583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=19583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=19583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}