February 25, 2018 started as a regular day for most users and traders of cryptocurrencies.
However, this was not the case for traders and users of the “PDAX” cryptocurrency exchange, which is based in the Philippines.
Trading Bitcoin for $ 6,000 on the “GDAX” platform:
The Philippine cryptocurrency exchange “PDAX” suffered a flaw and a bug that resulted in Bitcoin trading 88% less than its actual price.
The platform reported that the reason for this was the increase in trading activity.
At the time of the imbalance, bitcoin was trading at $ 50,000, but traders were able to obtain bitcoin for $ 6,000.
Although the PDAX trading platform had halted operations to fix the bugs, it was still a bit late.
Some users took advantage of the vulnerability and withdrew Bitcoins from the platform.
To avoid a heavy loss, PDAX asked traders to return Bitcoin or risk facing legal action.
Several users claim to have received messages to this effect.
It is still unclear what the legal procedures will be on the part of the “PDAX” trading platform.
However, users believe that they have not violated any condition or rule agreed upon on their part with the platform.
Causes of the defect:
Large-scale transactions are occurring on a daily basis as Bitcoin whales escalate their activity.
And their group transactions often indicate strong bullish signals or vice versa.
Reports on social media led to strong suggestions that the malfunction was caused by a bitcoin whale moving.
According to some reports, one bitcoin whale sold 316,000 Bitcoins for 300,000 Philippine pesos (about $ 6,100) instead of the actual price of 2.3 million Philippine pesos ($ 47,000).
This prompted the “PDAX” platform to cease trading activity, temporarily close the withdrawal of users, and then temporarily suspend the platform’s operation.
Users are angry about not being able to access the accounts:
PDAX’s attempt to control the situation backfired as it angered many users on social media.
The downtime, which lasted 36 hours, took a toll on customers and made them angry because they were unable to access their account.
They expressed their frustration due to lost trading opportunities and accumulated losses from their inability to close their positions.
In the end, “PDAX” issued a comprehensive report addressing the problem, and informed the platform that an infiltration occurred in its system and affected the account of its users.
In a press conference, PDAX CEO Nickel Gaba said:
It is very understandable that a lot of users were upset that they were unable to purchase what they thought there was a bitcoin offering at very low prices.
Unfortunately, the base Bitcoins were never held by the platform, so there is nothing that can be bought or sold at these prices.