Crypto.com unblocks users and reverses glitched LUNA trades that generated 30-40x returns.
On May 13, Crypto.com immediately suspended trading when an internal tool spotted the system reporting false LUNA pricing. As Terra’s death spiral witnessed an unrecoverable price drop of LUNA and stablecoin UST, Crypto.com was one of the only crypto exchanges to keep LUNA trading open. However, a technical fault in Crypto.com’s mobile application temporarily allowed customers to earn 30-40x on LUNA trades.
On Friday, Crypto.com immediately suspended trading when an internal tool spotted the system reporting false LUNA prices owing to a mistake. Just as Crypto Twitter began to express worries about transaction reversals on the exchange, Kris Marszalek, CEO of Crypto.com, disclosed details about a bug that allowed customers to benefit massively. Users that traded “within those 59 minutes,” according to Marszalek, are entitled for a buyback option at the market price for LUNA tokens, which has now plummeted to $0.0004685 at the time of writing. It is worth noting that LUNA hit an all-time high market price of approximately $120 on April 5. Marszalek stated that “all user accounts have been re-enabled” after a day’s assessment of the LUNA trading catastrophe. While Crypto.com canceled the LUNA transactions, the business has offered impacted investors $10 in Cronos (CRO) as a goodwill gesture. With the price of LUNA falling by more than 99 percent, Terra blockchain validators formally paused the network in order to avoid governance assaults.