One of the largest cryptocurrency exchanges in Southeast Asia blames a technical error to bring the price of bitcoin down to 300,000 Philippine pesos, or almost $ 6,100, on February 16.
An unknown number of Philippine Digital Asset Exchange (PDAX) customers were able to buy thousands of BTCs on the stock exchange at a huge discount, making them billionaires in local currency on paper – for at least a few hours.
A number of PDAX customers have withdrawn purchased bitcoins within the exchange limit for individual accounts equivalent to one bitcoin per 24 hours. PDAX allegedly requires these users to return the BTC they received during a crash, threatened by potential legal action.
A technical error resulted in a 36-hour lockout, and many users continued to report that their accounts were blocked.
A user who managed to buy bitcoin when it dropped to 300,000 PHP from 2.4 million PHP, took up Reddit to get an opinion on whether they were legally obliged to return bitcoin and received a flood of mixed responses.
“I managed to move the purchased BTC to another wallet outside of PDAX before trading, and the site was eventually shut down,” Redditor explained in a post on r / phinvest.
“Almost 24 hours later, they sent me a request via email and text messages asking me to transfer BTC, which was purchased well within my rights without violating any laws or regulations of trading platforms, otherwise they would” probably “have to take legal action against me. ”
On February 23, PDAX chief Nichel Gaba held a press conference to explain what happened last week. He explained that the burden that the increase in unforeseen actions caused by unforeseen actions caused an imbalance that made it possible to match the unfunded problem with the funded order. According to Gaba, this led to a chain effect, as a result of which the price of BTC fell below reasonable levels.
“It is understandable that many users are upset that they managed to buy what they thought was the demand for bitcoin at very low prices. Unfortunately, the underlying bitcoins were never available to the stock exchange, so there is nothing to buy or sell. “…
Gapa stressed that out of all the exchange’s customers from February 23, “only 0.2% will not have access to their account.”
PDAX was founded in 2019 and is licensed to operate as a stock exchange by the Central Bank of the Philippines. The stock market, which closed on February 16, reached a turning point in Bitcoin history when it peaked at $ 50,000 for the first time.
PDAX is not the only one facing the challenge of growing to meet users’ needs, as Coinbase and Binance have also been disrupted this year.