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Kraken taken to court over Ether May flash crash

Friday 7 July 2017 10:47 CET | News

Users affected by Ether flash crash in May 2017, have filed a class-action lawsuit against Kraken, a cryptocurrency exchange.

On 07 May 2017, ETH/USD plummeted from 94.85 levels to 26 levels, according to EconoTimes. In a Twitter post, the startup announced that it was under heavy DDoS attack. Later, the cryptocurrency exchange issued an official statement explaining the attack, the online publication continues. Importantly, it said that it did not find any evidence of a coordinated attack or market manipulation in its investigations. Furthermore, it said that it cannot compensate traders for the outcome of naturally occurring events in the market, nor losses due to unavoidable DDoS attacks.

The lawsuit has been filed within two months of the said incident. According to court documents, it has filed on behalf of five plaintiffs by the Florida-based Silver Law Group. Another Florida-based law company Wites & Kapetan is also involved in the lawsuit. The plaintiffs are seeking certification for class-action status, as well as unspecified damages and compensation for legal fees, according to CoinDesk.


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Keywords: Kraken, Bitcoin, cryptocurrency, blockchain, US, Ethereum, DDoS, lawsuit
Categories: DeFi & Crypto & Web3
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Countries: World
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DeFi & Crypto & Web3






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