After allegations of manipulation: BitMEX gives the all-clear - users are bogged down

After allegations of manipulation: BitMEX gives the all-clear - users are bogged down


The crypto-exchange BitMEX gives the all-clear. The trading platform, on which, among other things, derivatives for Bitcoin and Ether can be traded, was at short notice under a DDOS attack. About their Twitter account, the company gave the all clear - so everything is back in the green. Not so with the users, who apparently are largely bounced. There is talk of manipulation.

The crypto exchange BitMEX, on which one can trade among other things Bitcoin derivatives, stood briefly under a DDOS attack, has now however again everything under control according to own data. It all started with the announcement of "maintenance" on the website:

The first signs of inconsistencies were evident in the company's Twitter account when it reported on August 22 that many users reported login issues:

Shortly afterwards BitMEX realized that they had fallen victim to an attack, but the login had stabilized again:

On the same day, however, came the all clear. So BitMEX has the situation under control again and everything could go back to its usual gear:

 While the login was not possible at short notice, many users were given the opportunity to dissolve their short positions or to act at all. So the community reacted little enthusiastic. The allegations eventually went so far that a user called the stock market a "shame for the whole ecosystem":

In the meantime, the Bitcoin price had risen $ 400 to $ 6,800, coinciding with the liquidation of a large number of short positions.

What happened?

The liquidation of the short positions coincided with the brief maintenance of BitMEX - which has already left many traders with no opportunity to act. However, since these had apparently been announced, users would not have been surprised. Rather, it was the debacle that followed what baffled the traders so much. A - even if it is so short-term - suspension of the login Trader could already cost a large amount of capital. Worse yet, the delay caused by the (alleged) DDOS attack eventually resulted in many users being unable to access their accounts for a long time. So they became unable to act. The fact that the maintenance of the stock market, the short-term rise in prices and the attack followed in such a short time, can therefore be doubtful,

Ultimately, there are such recurrent security vulnerabilities and manipulation allegations that testify to the immaturity of the Bitcoin ecosystem. Targeted regulation and regulated exchanges would offer investors much more security.

Addendum: As it turns out, BitMEX has rented the entire 45th floor of the "World's Most Expensive Offices" in Hong Kong, according to Bloomberg . The Cheung Kong Center is also home to affluent companies such as Goldman Sachs Group Inc., Barclays, Bank of America Corp., Bloomberg LP and billionaire billionaire Li Ka-shing's empire.