OKEx and probably Huobi to cover loses for crypto investors

Crypto exchange confirmed compensations for clients, who lost their funds during the failure of the system on March 12th.

The major cryptocurrency exchange OKEx confirmed that it will award compensations for clients, who lost their funds during the failure of the system.

Two well known digital asset exchanges, Huobi and OKEx experienced an incident on March 12th, the historical black day for both crypto and traditional markets. At a time, when all global markets were on a free-fall, Huobi and OKEX witnessed extreme unexpected volatility, which caused the Perpetual Swap order book to lag for a short period of time.

Albeit brief the system failure on both exchanges caused serious damages for traders, as their trades were not pushed through or the stop-losses were nulled.

Although clients started to complain as soon as the incidents occurred, only this week OKEx agreed to offer the compensations. Huobi might be doing the same in the nearest future.

A Malta-based OKEx released a statement on March 23th, saying that their support team has already contacted the affected customers and reached a mutually beneficial solution:

Our customer support team has already started to contact users that have logged on to our platform and traded perpetual swap orders during the incident to discuss compensation solutions. Currently, we have already communicated with most of the affected users and have reached a mutually satisfactory solution.

The company also claims that its technicians immediately repaired the system and investigated the cause of the incident to prevent future incidents.

As for Huobi, the unverified rumors across the crypto community say, that yesterday dissatisfied clients gathered outside Huobi’s office in China to demand a refund. According to the crypto community, Huobi’s spokesperson stated, that the affected clients need to contact Huobi electronically to claim for damage compensation.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia