Fun

Philippine Crypto Exchange Demands Users Return Bitcoin Bought at $6,000 Following System Error

News Feed - 2021-02-26 05:02:33

Philippine Crypto Exchange Demands Users Return Bitcoin Bought at $6,000 Following System Error


Philippine crypto exchange Pdax recently suffered a costly technical failure – one that led to bitcoin trading at 300,000 Philippine pesos (around $6,000) – a discount of 88% to its current price.


In the melee, some users managed to buy at these ridiculously low prices and quickly moved the bitcoin (BTC) away from their exchange wallets before the error was detected, local news outlet Bitpinas reported. The actual amount of BTC hoarded at the $6,000 give-away price is not clear.


However, the Philippine Digital Asset Exchange, or Pdax, is now demanding that users return the bitcoin or face legal action. The exchange has since locked out several of its clients from their accounts for this reason. But the traders are having none of it.


“After almost 24 hours, they sent me a demand letter and SMS, requesting me to transfer back the BTC, or they ‘may’ be compelled to take legal actions against me.” said one trader who bought at the low price and is convinced he did not violate any of the trading platform’s laws during the purchase.


Rafael Padilla, a lawyer representing one of the Pdax users being asked to return the BTC and locked out of their accounts, said: Our client’s trade transaction was legitimate under applicable laws, decided cases, and of course according to Pdax’s very own terms and conditions/user agreement.


According to Padilla, Pdax has opted to lock users out of their accounts because it cannot unilaterally reverse the transactions.


The exchange began to suffer outages from around Feb. 16, which it blamed on “unprecedented levels of trading and volatility”. An official statement from Pdax chief executive officer Nichel Gaba claims that 95% of accounts have been restored, but several users reportedly still remain locked out of their accounts.


On Feb. 23, Gaba told a virtual press conference that: “It’s very understandable that a lot of users will feel upset they were able to buy what they thought an order was there for bitcoin at very low prices. But unfortunately, the underlying bitcoins were never in the possession of the exchange, so there’s never really anything there to be bought or sold, unfortunately.”


What do you think about the technical failure at Pdax? Let us know in the comments section below. Binance Blamed for Purposely Choking Ethereum’s Network EXCHANGES | 4 days ago Study: Top-Tier Cryptocurrency Exchanges Increased Their Market Share by 13% Since October 2020 EXCHANGES | 6 days ago Tags in this story Bitcoin discount, Exchange system error, Nichel Gaba, Phillipine Digital Asset Exchange (Pdax), Rafael Padilla


Image Credits: Shutterstock, Pixabay, Wiki Commons Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

BTC Has Died 466 Times — 2 More Death Calls Added to the Bitcoin Obituaries List After FTX Collapsed
BTC Has Died 466 Times — 2 More Death Calls Added to the Bitcoin Obituaries List After FTX Collapsed Just before the FTX collapse, bitcoin was trading above the $20K zone and aft
US Lawmakers Probe SEC, Treasury, Federal Reserve Over Revolving Door With Crypto Industry
US Lawmakers Probe SEC, Treasury, Federal Reserve Over Revolving Door With Crypto Industry U.S. lawmakers have raised concerns about the revolving door between financial regulators
Litecoin Eyes $117.50 As Price Rebounds From Key Support – Analyst
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
South Africa Proposes 30 Rules to Regulate Cryptocurrency
South Africa Proposes 30 Rules to Regulate CryptocurrencySouth Africa’s top financial regulators, including the South African Reserve Bank, have jointly released a policy pape
Savannah Fortis14 hours ago‘AI’ takes Collins dictionary word of the year, ‘debanking’ makes shortlistThe Collins dictionary named ‘AI’ word of the year, describing AI-powered language models as “bursting i
Market Update: Bitcoin Captures $11K, Flash Buy Signals, Bollinger Band Squeeze
Market Update: Bitcoin Captures $11K, Flash Buy Signals, Bollinger Band SqueezeCryptocurrency markets are seeing decent gains on Friday following the announcement Square made the da
Mark Cuban: Crypto ‘Exactly’ Like Dot-Com Bubble — Expects Bitcoin to Survive Bubble Burst, Thrive Like Amazon
Mark Cuban: Crypto "Exactly" Like Dot-Com Bubble — Expects Bitcoin to Survive Bubble Burst, Thrive Like Amazon Billionaire Shark Tank investor Mark Cuban sees
Soccer Giant AC Milan Seals Sponsorship Deal With Crypto Exchange Bitmex
Soccer Giant AC Milan Seals Sponsorship Deal With Crypto Exchange Bitmex Italian soccer club AC Milan and Bitmex have reached a long-term partnership agreement t
Biggest Movers: AXS Jumps Over 20%, as MATIC Falls to 13-Month Low
Biggest Movers: AXS Jumps Over 20%, as MATIC Falls to 13-Month Low Despite the majority of tokens trading in red on Thursday, AXS was up by over 20% in today’s session. Whil
Thorchain Trolled by Hacker After Two Successful Seven-Figure Exploits
Thorchain Trolled by Hacker After Two Successful Seven-Figure Exploits Thorchain, a popular defi protocol, has been compromised twice in the last two weeks, resu
Ethereum price hits resistance at $3K, but data currently favors ETH bulls
Marcel Pechman3 hours agoEthereum price hits resistance at $3K, but data currently favors ETH bullsEthereum price struggles at the $3,000 level, but data hints at a resumption of the bull trend.1778 Total views64 Total s
$8 XRP Breakout Brewing — SEC No Longer A Roadblock, Bullish Analyst Says
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu