Deribit to reimburse users $1.3m after Bitcoin flash crash
Bitcoin fell to a low of $7,720 on Thursday October 31 after exchange rate miscalculation led to a flash crash
Cryptocurrency futures and options exchange Deribit says it will use its own money to refund users over $1.3 million (£1m, €1.1m) of losses affected by an exchange rate miscalculation.
Deribit recognised its role in the error, which occurred on Thursday 31 October and resulted in Bitcoin (BTC) trading at a low of $7,720 (£5,963.08).
At around 20:00 UTC on 31 October BTC’s spot price dipped from $9,260 to $9,055.
An hour later, Deribit saw futures prices drop from $9,150 to $7,720 before bouncing back above $9,000 within minutes.
However, in a tweet thread on Twitter Deribit said it would attempt to rectify the incident by changing the price of stop-loss trades to a fixed BTC level, depending on the product.