After the great bullish rally in the price of Bitcoin, and the increase in the price of other cryptocurrencies, more and more people have decided to enter the crypto market to take advantage of the profit opportunities in it. However, exchanges are sometimes not prepared for such a large increase in trading volume, which can lead to errors. Just what happened with PDAX, an exchange that will sue its users if they do not return Bitcoins bought at a discount.
Blockchain technology, the basis of the operation of cryptocurrencies, has a deserved reputation for infallibility. And it is that blockchains are practically impossible to manipulate, which provides trust and transparency to crypto assets. A technological superiority that cryptocurrency exchanges do not enjoy.
Thus, unlike blockchains, cryptocurrency exchanges do not work directly with Blockchain technology. Which means that they are exposed to cyberattacks and errors on their platforms, just like any other traditional financial application. Many of these errors being caused by surprise increases in the volume of transactions made by traders.
This is what seems to have happened to PDAX, an exchange based in the Philippines which, due to an error in its platform, allowed its users to acquire Bitcoins with discounts of up to 88% on their price. As a result, PDAX customers were able to acquire BTC for as low as $ 6,000.
Exchange threatens its users
Of course, the exchange has not stood idly by and has immediately blocked the accounts of clients who acquired these discounted Bitcoins. Asking them to return the BTC or the exchange will sue the users.
Although at the moment 95% of the accounts have been restored, a sector of the users of the exchange refuses to return the Bitcoins. Arguing that the purchase they made was totally legal according to the applicable laws, and the terms and conditions of PDAX. Even hiring lawyers to represent them in court against PDAX.
For its part, the exchange argues that Bitcoins sold at a discount never actually existed. If not, it was a simple computer error, so users never bought any cryptocurrency. An argument defended by PDAX CEO Nichel Gaba:
«It is quite understandable that many users are upset that they were able to buy what they believed to be Bitcoin at very low prices. But alas, the underlying Bitcoins were never in possession of the exchange, so there was never really anything there to be bought or sold.».