Terra | Crypto.com faces backlash over trading reversal, offers $10 compensation in CRO, CEO: Platform's LUNA coin price up over 40x
The trading platform of the cryptocurrency debit card company Crypto.com was affected by the recent turmoil surrounding Terra, claiming that there were pricing errors with LUNA during this period and trading was quickly suspended. The company has promised to compensate affected users with 10 USD worth of CRO tokens, but users seem to be dissatisfied with the resolution.
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Crypto.com announcement states that between 20:40 - 21:39 on May 12th (Taiwan time), all trading of LUNA was canceled for both buyers and sellers, with affected users being compensated with $10 worth of CRO tokens.
In response, Crypto.com CEO Kris Marszalek had this to say.
A lot of noise on this, so let me comment.
For 59 minutes we were quoting prices 30-40x ABOVE market prices for Luna due to technical glitch that affected the retail app and NOT the exchange. https://t.co/XMjSnWQ6aO
— Kris | Crypto.com (@kris) May 13, 2022
He tweeted:
"There have been many comments about us in the market recently, so I want to clarify.
The technical glitch on May 12th affected users' apps, not the exchange itself, causing our LUNA quotes to be 30-40 times higher than market prices within 59 minutes. Many users bought at the wrong prices, and of course, some users took advantage of this loophole."
"We have reviewed all trades."
"Some users held significant funds and thanked us, while others who did not exploit the loophole criticized us."
"If you were a 'seller' during this 59 minutes, simply contact customer service, and we will buy back the LUNA tokens for you at the market price at that time, but certainly not at 30-40 times higher than the market price."
"The root cause of the technical glitch has many external factors, including small price changes due to Luna death spiral, withdrawals, and the halt of the Terra blockchain."
"These factors caused price discrepancies, and while index pricing should accurately capture prices, it did not happen that day. We have improved the platform systems to address these issues to ensure this does not happen in the future."