October 19, 2021
Markets

Cryptocurrency traders seek damages from Binance after major outage

The logo of cryptocurrency exchange Binance displayed on a phone screen.

Jakub Porzycki | NurPhoto via Getty Images

When Canadian cryptocurrency trader Fawaz Ahmed saw the price of ethereum dropping, he knew it was time to get out. Unfortunately for him, he couldn’t.

Ahmed was trading on Binance, the world’s largest digital currency exchange by trading volume. And on May 19, Binance experienced a major outage which meant that, for about an hour, he was unable to exit his position.

That day, bitcoin and ethereum posted their biggest one-day drops since March 2020, with the entire crypto market losing roughly $1 trillion in value. When prices fell below a certain point, Ahmed’s position got wiped out. His personal losses came to about $6 million.

“This loss was not fair,” Ahmed, a 33-year-old who trades full-time, told CNBC. “This is something which was out of my control.”

Ahmed is one of…

Read full article here: www.cnbc.com