Crypto.com Rolls Back ‘Illegitimate Trades’ After System Maintenance
Cryptoasset-powered debit card and trading services firm Crypto.com’s exchange is back online again after an issue during system maintenance caused a prolonged outage for the exchange this week, with some users reportedly being able to take advantage of the situation to “manipulate” trades.
According to Crypto.com’s CEO Kris Marszalek, the exchange suffered from an unknown database issue, which caused an outage.
He said that the outage led some users to take advantage of the situation “to manipulate ETH/USDT price” on the exchange. “They locked in gains by selling to other coins en masse,” the CEO added, noting that the exchange’s own risk systems blocked the users when they tried to withdraw their profits.
To mitigate the situation, Marszalek said that “some illegitimate trades will be reversed and balances restored.” He followed up by saying that “since the risk systems kicked-in almost immediately, our monetary loss from this event is negligible.”
Following the outage, the CEO again took to Twitter, telling users that the exchange is once again back online after the incident.
@Kris_HK You should own your exchange price errors. The trades were not "illegitimate" if you posted an ETH price a… https://t.co/enfQm5umxu— Bob Koonce (@BobKoonce)
According to Crypto.com’s blog post about the incident, the exchange was down from 16:21 UTC on Sunday, September 20, and until 18:15 UTC on Tuesday, September 22.
All transactions on the exchange were rolled back to a snapshot taken at 15:45 UTC on Sunday, September 20, the update from the company further said, adding that “all customer funds were kept safe throughout the process.”
Crypto.com’s own token, CRO, ranked 11th by market capitalization, saw a sharp dip in its price on Sunday, falling more than 13% around the time the exchange went down. However, the price later recovered about half of its earlier losses, and now trades at USD 0.153 (12:43 PM UTC). The price is nearly unchanged over the past 24 hours, but remains down almost 10% over the past 7 days.