Beaxy, a relatively new cryptocurrency exchange launched in June of this year, has halted trading and withdrawals after a massive XRP sell-off saw the crypto’s price drop over 60% on its platform.
According to a blog post the exchange published, trading was halted after trading volumes on the XRP/BTC trading pair suddenly surged and led to a significant sell-off. XRP’s price plummeted on the exchange before trading was frozen, so much so it traded at 0.00001 BTC, compared to 0.0000263 BTC on other exchanges.
Those responsible for the XRP slump on the exchange are reportedly going to be identified, as Beaxy claims its conducted know-your-customer (KYC) checks will allow them to get to the bottom of the issue.
On social media the cryptocurrency trading platform adds that it’ll “pursue action against them,” referring to those behind the XRP sell-off. IT notes it’s confident it can “reclaim misplaced funds.” At press time, trading is still halted on Beaxy as it works to roll back trades.
In addition, KYC has allowed us to identify participants in this incident & pursue action against them. We feel confident we can reclaim misplaced funds. To impacted users, thanks for your support!— Beaxy (@BeaxyExchange) August 13, 2019
Despite being launched in June, Beaxy has reportedly already faced other challenges, as earlier an attempt to hack its infrastructure was reported. That security breach attempt failed to steal user data or funds from its wallets.
The exchange’s short history makes it so that data on it is scarcely available. On its website it reports a 24-hour trading volume of nearly 100 BTC ($1.1 million), although the figure likely counts the XRP sell-off.
The global price of XRP doesn’t seem to have been affected by the incident. At press time XRP is trading at 0.0000262 BTC after falling 0.5% in the last 24 hours.