Crypto.com glitch leads to abrupt halt of all trading on May 13 after an internal tool detected that the system was quoting incorrect prices for LUNA.
While Terra’s death spiral saw an unrecoverable price crash for LUNA and stablecoin UST, Crypto.com was one of the few crypto exchanges to keep its LUNA trades open. LUNA trades were temporarily able to profit 30-40x due to a technical glitch with Crypto.com’s mobile app.
Due to an error in the system, Crypto.com abruptly barred users from trading after a tool found that the system had been quoting incorrect prices for LUNA. Kris Marszalek, CEO of Crypto.com, revealed details about a glitch that allowed users to take massive profits just as Crypto Twitter started raising concerns about crypto.com glitch and trade reversals on the exchange.
Marszalek said users who traded “during those 59 minutes” can get their tokens back at the current market price for LUNA tokens, which has since fallen to $0.0003212 at the time of writing. On April 5, LUNA reached its all-time high market price of nearly $120.
“The root cause was a combination of multiple external factors (tick size changes due to Luna death spiral, withdrawals & entire Luna chain stopping) together leading to price dislocations that should typically be caught by index pricing, but weren’t.”
Kris Marszalek, CEO of Crypto.com
Marszalek informed that “all user accounts have been re-enabled” after a day-long review of the LUNA trade debacle.
Terra revival plan puts UST, LUNA holders in charge
Despite reversing the LUNA transactions, Crypto.com is offering $10 worth of Cronos tokens as a gesture of goodwill to affected investors.
Terra’s validators officially halted the Terra blockchain network after LUNA’s price collapsed 99%.
