Deribit Refunding $1.3 Million to Clients Affected by Flash Crash

  • Crypto derivatives exchange Deribit will reimburse $1.3 million to users affected by the flash crash on Oct. 31.
  • Price of bitcoin briefly fell to $7700 on the exchange as a result of an outlier value. 

Crypto derivatives exchange Deribit will pay $1.3 million to users affected in the bitcoin flash crash that took the price to $7,700.

According to a tweet published Nov. 1, the exchange took responsibility for the crash that occurred on  Oct. 31, which involved the price of BTC suddenly falling from above $9,000 to $7,700. Deribit says it will reimburse clients involved in the crash, which amounts to more than $1.3 million. The update also informs users the exchange will not be dipping into its insurance fund to cover the losses, but instead handle it out of pocket. 

Deribit explained that an outlier value, which was inappropriately calculated by the exchange, caused BTC sellers to be paid in a lower value than the market or book price for bitcoin, leading to a loss of more than $1.3 million in the ensuing crash. Deribit says the outlier should have been removed from the index rather than being allowed to influence the price. 

The exchange reiterated its commitment to solving the issue and reimbursing those affected by the crash. 

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