After an internal tool discovered that the system was quoting incorrect prices of LUNA, Crypto.com banned users from trading on May 13.
Crypto.com was one crypto exchange that kept LUNA trading open during Terra’s death spiral, which saw an unrecoverable price drop of stablecoin USD and LUNA. Users were able to make a temporary profit of 30-40x on LUNA trades due to a glitch in Crypto.com’s mobile app.
After an error in the internal tool detected that Crypto.com was incorrectly quoting LUNA prices, Crypto.com banned users from trading on Friday. Kris Marszalek (CEO of Crypto.com), revealed details about a glitch that enabled users to take huge profits just as Crypto Twitter began raising concerns about trade reversals.
Marszalek stated that users who traded “during those 59 minute” can be eligible for a buyback option at LUNA tokens’ current market price of $0.0004685. This has since dropped to $0.0004685 as of the writing. It is worth noting that LUNA reached its record-breaking market price on April 5th, at $120.
“The root cause was a combination multiple external factors (tick sizes changes due to Luna’s death spiral, withdrawals, and complete Luna chain stopping), which led to price dislocations that should have been caught by index pricing but were not.
Marszalek stated that all user accounts had been re-enabled after a day of review about the LUNA trade disaster.
Crypto.com has reversed the LUNA transactions and offered $10 worth its in-house token Cronos ( CO ) to affected investors as a gesture of goodwill.
Related to Broken: Terra blockchain officially halted after LUNA price collapse
The Terra blockchain validaters officially stopped the network aiming at preventing governance attacks after LUNA’s value collapsed more than 99%.
After implementing a new patch to disallow further delegations, the validators will relaunch their network.