Crypto investors seek damages from Binance



David Kay of Liti Capital joins The Exchange to discuss his company’s role in litigation against Binance, a crypto currency exchange. Liti seeks damages from Binance and more crypto regulation from governments. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

When Canadian cryptocurrency trader Fawaz Ahmed saw the price of ethereum dropping, he knew it was time to get out. Unfortunately for him, he couldn’t.

Ahmed was trading on Binance, the world’s largest digital currency exchange by trading volume. And on May 19, Binance experienced a major outage which meant that, for about an hour, he was unable to exit his position.

That day, bitcoin and ethereum posted their biggest one-day drops since March 2020, with the entire crypto market losing roughly $1 trillion in value. When prices fell below a certain point, Ahmed’s position got wiped out. His personal losses came to about $6 million.

“This loss was not fair,” Ahmed, a 33-year-old who trades full-time, told CNBC. “This is something which was out of my control.”

Binance’s customer service team gave Ahmed an “absurdly” low offer of compensation, he said.

Video more
BINANCE Rückzug aus Deutschland! Die BESTE Alternative für Bitcoin & Crypto Trading! FTX Tutorial

Ahmed is one of hundreds of investors expected to take part in arbitration proceedings against Binance, seeking damages for the money they lost when the cryptocurrency exchange went offline.

Binance said it was unable to comment on “pending legal matters.”

“Our policy is fair in that we compensate users who experienced actual trading losses due to our system’s issues,” a spokesperson for the firm told CNBC. “We do not cover hypothetical ‘what could have been’ situations such as unrealized profits.”

Binance has experienced several outages over the years in times of heightened volatility for virtual currencies. That can be costly for traders, especially when prices are plunging.

And those losses can balloon to millions of dollars when investors make risky bets using leverage, or borrowed money, to augment trades — which, on Binance, is something users do often.

Binance recently cut the maximum leverage customers can take on futures — financial derivatives that oblige investors to buy an asset at an agreed-upon price at a later date — to 20 times from a previous limit of 125 times.

Video more
كيف تحصل على بطاقتك البنكية الخاصة بمنصة بايننس Binance Card

Binance wasn’t the only crypto exchange to face disruption to its service on May 19. Coinbase users were also temporarily unable to access its site. Bitcoin plunged as much as 30% to nearly $30,000 that day. It has since recovered to $45,790.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV

source

CNBC Television

Read Previous

Axie Infinity – Definitely NOT an easy Arena Sesh

Read Next

These 5 Alt Coins Will 20x In 15 Days (HUGE Events)

7 Comments

  • Mr Greg is legit and his method works like magic I keep on earning every single week with his new strategy.

  • Hired by Coinbase

  • https://youtu.be/Ph1sMwSuHko

  • <<< Nice video mate! >>> For the past few days in many weeks we are seein bearing & bullish signs here and expect ₿TC to head towards the upper end, ₿TC long-term trend remains intact despite the loss of intermediate-term momentum. buyin pressure strengthened, pushing the cryptocurrency above what we saw last month. Mike McGlone, said last month that bitcoin has a “bullish ace up its sleeve” this week the strategist’s analysis notes that ₿TC prices will likely revert toward the $60K handle in contrast to the $46K support range. On the options front we've seen a good amount. I've been able to understand that there are two sides when it comes to crypto and everyone has their opinions when it comes to choosing sides, though i am not kicking against hodlin, but I see it as an old and odd strategy to make profit of the market as when the market goes bearish investors/traders loses their investment which is always painful, when you can take advantage of the market by involving in day tradin or copying trade alert from a professional trader that do get tips & understand the market and use strategy to generate signaIs daily to make profit to grow your portfolio as I've been doing with Mathew Nicholls for the past 5 weeks and I've been able to day trade to grow my initial 1.9₿TC to 9₿TC which you'll rethink and see that trad!ng is more better & profitabIe. I’ll advise current investors and newbies to take advantage of Mathew Nicholls he's very accurate and always yields a great positive return on investment. You can easily get to him on TE LE GRAM > [Mathewnicholls] <

  • fud

  • How can you regulate something that is already unregulated

  • Parasitic Legal System USA

Leave a Reply

Your email address will not be published. Required fields are marked *

bitcoin
Bitcoin (BTC) $ 61,163.00
ethereum
Ethereum (ETH) $ 4,164.09
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 479.42
cardano
Cardano (ADA) $ 2.01
dogecoin
Dogecoin (DOGE) $ 0.293583
usd-coin
USD Coin (USDC) $ 1.00
solana
Solana (SOL) $ 196.15
bitcoin-cash
Bitcoin Cash (BCH) $ 570.71
chainlink
Chainlink (LINK) $ 30.32
minidoge
MiniDOGE (MINIDOGE) $ 0.000000
dogecash
DogeCash (DOGEC) $ 0.022344
bitcoin-gold
Bitcoin Gold (BTG) $ 64.45