Exchange demands users return Bitcoin bought for $6K during tech glitch

Exchange demands users return Bitcoin bought for $6K during tech glitch

An apparent “glitch” on PDAX temporarily dropped BTC prices by 88% and saw trading suspended. The exchange held a press conference yesterday to explain what happened.

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One of Southeast Asia’s biggest crypto exchanges is blaming a technical glitch for the price of Bitcoin dropping down to 300,000 PHP, roughly $6,100, on Feb. 16. 

An unknown number of customers of the Philippine Digital Assets Exchange, or PDAX, managed to buy thousands of BTC from the exchange at a massive discount, making them local currency billionaires on paper — at least for a few hours.

A number of PDAX customers withdrew their purchased Bitcoin, up to the exchange’s limit on individual accounts of one BTC per 24 hours. PDAX is reportedly demanding these users refund BTC obtained during the crash under the threat of potential legal action.

The tech glitch led to a 36 hour closure, and several users continue to report remaining locked outside of their accounts.

One user, who managed to purchase Bitcoin when it dropped to 300,000 PHP from 2.4 million PHP, took to Reddit to ask for opinions on whether or not they are legally required to return the Bitcoin, receiving an outpouring of mixed responses.

“I managed to transfer the purchased BTC to another wallet outside PDAX just before they closed the trading and eventually the website,” the Redditor explained in a thread on r/phinvest.

“After almost 24 hours, they sent me a demand letter and SMS, requesting me to transfer back the BTC, which was purchased well within my rights without violating any laws or regulations of the trading platform, or they ‚may‘ be compelled to take legal actions against me.”

On Feb. 23, PDAX CEO Nichel Gaba held a press conference to further clarify what had happened the week prior. He explained that the burden placed on the exchange by a flurry of unanticipated activity had introduced a glitch that allowed an unfunded order to be matched with a funded order. According to Gaba, this led to a cascade effect that dropped the price of BTC below reasonable levels.

“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.”

Gaba stressed that of all the exchange’s customers, only “0.2% are unable to access their accounts” as of Feb. 23. .

Founded in 2019, PDAX is licensed to operate as an exchange by the Philippines central bank. The exchange’s Feb. 16 closure occurred during a pivotal moment in Bitcoin’s history as its price soared above $50k for the first time.

PDAX is not alone in its challenge of growing to meet the demand of its users, as Coinbase and Binance also suffered service outages this year.


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An apparent “glitch” on PDAX temporarily dropped BTC prices by 88% and saw trading suspended. The exchange held a press conference yesterday to explain what happened.

Theta blockchain launches first decentralized exchange dubbed ThetaSwap

Theta blockchain launches first decentralized exchange dubbed ThetaSwap

Blockchain-based video streaming network Theta now has its own decentralized exchange.

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Theta (THETA) has launched ThetaSwap, the blockchain’s first decentralized exchange platform, according to an announcement issued on Friday.

ThetaSwap v1 users will reportedly be able to swap Theta-based TNT-20 tokens in much the same way as is the case for automated market maker services like Uniswap and SushiSwap for ERC-20 tokens on the Ethereum chain.

With the launch of ThetaSwap v1, the project says it is hopeful that users will become incentivized to interact with the TNT-20 token standard.

Apart from TNT-20 tokens and Theta Fuel (TFUEL) — the Theta blockchain “gas coin” — future upgrades to the DEX will also feature support for wrapped tokens. Theta also revealed that some stablecoin projects have also expressed their intention to create TNT-20 versions of their tokens for use on ThetaSwap.

According to the announcement, streamers need to use their Theta Chrome wallet extension to swap tokens on the DEX platform. Owners of the web version can also migrate to the Chrome extension using their seed phrases.

ThetaSwap follows on the heels of the mainnet upgrades back in December 2020. At the time, the project upscaled its network to include support for smart contract data. Theta launched its mainnet back in May 2020 and remains one of the surviving projects from the 2017–2018 crypto bubble period.

The ThetaSwap announcement also coincides with significant upward price action for the THETA token. According to data from Coin360, the 20th-ranked crypto by market capitalization is up about 17% in the last 24 hours.

Indeed, THETA enjoyed a positive price run in 2020, gaining almost 2,000% throughout the year.