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Extreme Ethereum Selling Caused Flash Crash on Kraken

Jesse Powell, CEO and Co-founder of crypto exchange giant – Kraken, claimed that ‘Extreme Selling’ caused Ethereum (ETH) Flash Crash to USD 700.

The CEO spoke to Bloomberg TV and declared that his company was “in the process of investigating” the incident.

Nevertheless, Powell stated that,

“There doesn’t seem to be any evidence of a trading engine malfunction. It seems like trades processed accurately.”

The news will raise eyebrows beyond the crypto sector – especially in the light of two massive liquidations that also took place early this week.

Disturbingly for some, he admitted that another whale might have elected to liquidate. He said that “some people” had perhaps agreed “to take some money off the table. He continued,

“It could be that a single whale just decided to dump [their] life savings.”

Powell mused that the ETH crash was “probably not tied” to Tesla-related news but conceded, “You never know what moves these markets.” As reported this past weekend, Tesla’s Elon Musk said that “BTC & ETH do seem high.”

Powell stated that rolling back trades was an unlikely scenario. However, he did not rule out compensatory measures of some kind that could be in store for customers who were negatively affected. He replied,

“We may end up doing something for these people. We’re looking into it.”

On the Kraken Support subreddit, users meant they would not be so easily satisfied, nevertheless.

One insisted that they “got liquidated with a leverage of 1.5,” while another asked if anyone else was “wanting to join” them to “form a class action suit,” alleging they had lost “50%” of their “account’s worth” in the flash crash.

On Twitter, some were not ready to be soothed, as customer erupted at Kraken’s support staff,

“You forcefully liquidated my position at a false price while the app and site were non-functional. You need to refund our money!”

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