A major network crash became apparent at Binance in May when Binance’s app became non-accessible because of a technical fault that resulted in customers failing to back out from their leveraged positions. For almost an hour the app remained inactive making customers incapable of managing their crypto funds lying in their trade accounts. The victims are now invoking court proceedings against Binance in an effort to make their loss good through demanding compensation.
19th May 2021 was one of the worst days in the history of Binance’s crypto trading. It was the day on which this globally renowned crypto trading firm’s app became inaccessible for almost one hour. The reason was a technical fault which caused the failure of Binance’s customers to log into their accounts.
The problem is that there are multi-million customers of Binance throughout the world. All these customers are therefore from different time zones and in trading, the timing does matter a lot.
When the crash occurred, none of Binance’s customers were able to access their accounts. Since they have locked onto their leveraged positions, resultantly, they couldn’t back out. In addition, during this time, they also became unable to manage their crypto funds with Binance properly. Ultimately, all of Binance’s customers were left frozen and put to wait until the system was restored. Although it was no fault of anyone apparently, however, majority of Binance’s customers became unsatisfied. Some even said that they will be filing a case for compensation against their inability to access their accounts on 19th May.
It has been reported that hundreds of Binance’s customers, who were the victims of the crash, have formed a group. They are in the process of presenting a case before the Court in an effort to persuade Binance to pay for their losses. Most of the members of this group are customers of Binance from Italy and France.
The main complaint is one Anand Singhal while the rest of the group members become parties to the proceedings. It is the claim of Singhal that at the time of the crash he had locked in his positions at around US$ 50,000. However, when he noticed that the price of his locked-in trade product was going down, he immediately wanted to withdraw his offer. But he could not do so because of the crash and consequently he had to suffer huge financial loss. He claimed that the financial loss could have been avoided if he was allowed to access his online account at Binance. He further claimed that on that day there were thousands of victims like him who were made to suffer huge losses.
Singhal as well as other victims of Binance’s crash are now seeking Court’s indulgence for the compensation. It is reported that there could be more than 700 victims who would want to join the proceedings against Binance.