Share this article
GDAX Exchange to Reimburse Traders After Ether Flash Crash
Digital asset exchange GDAX is moving to issue refunds after a stunning flash crash last week stoked anger amongst affected traders.
By Wolfie Zhao
Updated Sep 11, 2021, 1:29 p.m. Published Jun 26, 2017, 5:25 p.m.
Make us preferred on Google
GDAX, the digital asset exchange operated by Coinbase, is moving to issue refunds after a stunning flash crash last week stoked anger amongst affected traders.
Ether prices dramatically plunged to $13 on GDAX amid a broader market decline on Wednesday. The fall triggered a margin call, liquidating positions held by leveraged traders, though the price soon bounced back above the $300 level at the time.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Coinbase ultimately opted to disable trading of the ETH/USD pair and temporarily block withdrawals of ether while it moved to investigate the situation.
In an update that followed on its official blog, GDAX said that it planned to honor every transaction, stating that no no technical issue with its system was found.
Yet in a follow-up blog post published two days later, Coinbase vice president Adam White reiterated the startup's position that the platform functioned as intended, but acknowledged that "however, some customers did not receive the quality of service we strive to provide and we want to do better".
White wrote:
"For customers who had buy orders filled — we are honoring all executed orders and no trades will be reversed. For affected customers who had margin calls or stop loss orders executed - we are crediting you using company funds."
Thus far, the degree of loss involved (and the exact amount that will be compensated) remains unknown.
The decision to refund users came amid growing complaints from Coinbase users – who alleged that the situation was exacerbated by a lack of accessibility to the exchange during the volatile period – and calls for legal action to recoup losses.
Despite largely recovering, the price of ether has fallen since last week's crash. At press time, the price of ether is $248.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin stuck near $88,000 as gold's and silver's record-breaking rallies show exhaustion signs
"Gold and silver casually adding an entire bitcoin market cap in a single day," wrote one crypto analyst.
What to know:
- Bitcoin is off its worst levels of the weekend, but still near the year's low at $87,700.
- Facing the same news cycle as crypto, precious metals continued to surge higher, but a quick retreat from their highs on Monday suggested a bit of exhaustion was setting in.
- Analysts remain dour on the outlook for crypto prices given the looming government shutdown as well as delays in passage of the Clarity Act.
Top Stories
