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Philippines crypto exchange suffers outage that resulted in bitcoin trading at $6K, instead of current market price

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The Philippine Digital Asset Exchange, the biggest crypto exchange in Southeast Asia, suffered a technical glitch that resulted in Bitcoin (BTC) trading at $6,000 (PHP300,000) – an 88% markdown to its current market price.

After the major outage that was caused by a surge in volume and increase in volatility, PDAX asked its customers to return their Bitcoins, threatening to file legal action, local news outlet Bitpinas disclosed.

“Because of the recent surge in volume, we are experiencing outages that led to PDAX having to go on a longer maintenance period to ensure that we can scale the platform up and provide better service,” Bitpinas quoted chief executive officer Nichel Gaba as saying.

Funds are safe, PDAX says

The initial outage reportedly occurred on February 18. However, reports have emerged since then on social media of customers being unable to access their accounts and demanded to “return their Bitcoin.”

According to Gaba, when they noticed the outage last week, wherein an unfunded order was submitted into the system, they quickly deactivated the system “to prevent that order from affecting other accounts.”

“Please rest assured that the funds are safe. We expect to re-enable the platform very soon so that our users can access their accounts and resume trading,” the CEO said when asked whether the funds are safe.

The transaction was legit, lawyer says

Rafael Padilla, a legal counsel representing the users who are currently locked out of their exchange accounts, commented on the issue on Facebook:

“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.”

PDAX, which started retail operations in 2019, has seen a steady increase in Filipinos’ interest in cryptocurrencies in the face of an ongoing global health crisis. The crypto exchange registered a spike in transactions up to 70 times its normal volumes during the past 11 months.

Meanwhile, PDAX — which claims that around 95% of accounts have been restored — said it’s ready to face lawsuits from investors as users were locked out of their accounts following the outage, according to the Philippine Star.

 

Image courtesy of Crypto Crow/Pexels

The post Philippines crypto exchange suffers outage that resulted in bitcoin trading at $6K, instead of current market price appeared first on BitcoinerX.

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Source: https://bitcoinerx.com/bitcoin/philippines-crypto-exchange-suffers-outage-that-resulted-in-bitcoin-trading-at-6k/

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