Home » BitMEX Announces Response Policy For Not Compensating For Loss Of Crypto XRP Futures

BitMEX Announces Response Policy For Not Compensating For Loss Of Crypto XRP Futures

Ritika Sharma
February 16, 2020
6:06 pm

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BitMEX has announced its response policy in response to the “flashcard” of XRP/USD trading on February 14 this year.
BitMEX users are large in the United States, Japan, and Asia, but this is since BitMEX is not a registered company in the areas where such requests are received.
BitMEX may also be seeing traders asking the CFTC to investigate them to find damage from a large flash crash.

The world’s largest cryptocurrency derivatives exchange, BitMEX, has announced its response policy in response to the “flashcard” of XRP/USD trading on February 14 this year. Some users who had forcibly closed (cleared) their positions, flooded claims. Voices of the pursuit of responsibility were growing.

According to BitMEX,

” the stop loss performed by some traders was conducted at the actual last trading price, not at the index price.” “As a result of the investigation, there was no problem with the system or the mechanism of stop-loss,” BitMEX added

In response to solutions such as compensating for the money, the company also issued a statement saying that it will not roll back transactions or refund in any case.

“If BitMEX is a U.S. registered exchange, at least the CFTC will work, but not in this case,” said a lawyer well known in the Cryptocurrency area. BitMEX users are large in the United States, Japan, and Asia, but this is since BitMEX is not a registered company in the areas where such requests are received.

There was, in fact, even a case where the CFTC investigated BitMEX in July 2019, but the findings have not been released yet.

But on the other hand, Kraken, which is a U.S. exchange that occasionally sees flash crashes due to circuit breaks, reports that they have received a large number of subpoenas and search requests from the FBI throughout 2019. BitMEX may also be seeing traders asking the CFTC to investigate them to find damage from a large flash crash.

But Jake, the lawyer has known in the crypto area said, BitMEX does not have a legal entity in the United States of America, will comply with the CFTC investigation request with no obligation at all. Derivative giant Deribit had suffered a -15% flash crash last November, was taking steps to roll back the deal, and compensate for the loss.

In a flash crash on May 6, 2010, which shook the U.S. stock market, the S & P 500, Dow Jones, and Nasdaq Composite Indexes fell hard at 9% (about $ 1,000) in minutes. Five years later, the U.S. Department of Justice arrested British Navinder Singh Sarao, suspected of maneuvering a market and intentionally causing a flash crash in 2015.