- The PDAX exchange asks users to return bitcoin after selling at $6K.
- According to the exchange, it was a tech glitch.
The Philippine Digital Assets Exchange (PDAX) asks users to return their bitcoin after selling at $6K. This failure led to Bitcoin trading at 88% lower and halt of all trading activities within the exchange.
The exchange also announced in a statement to explain the incident that happened on February 16. It also urges users to return their BTC.
We’d like to thank you all for your patience regarding the incident that happened on Feb 16. Below is our statement, as of today Feb 20. Please expect us to continue to update you of the developments, which we are working on round the clock.
Thank you. pic.twitter.com/HvWFIRsSyy
— PDAX (@pdaxph) February 20, 2021
PDAX CEO Nichel O. Gaba said the following words in a statement published on February 20:
It’s very understandable that a lot of users will feel upset they were able to buy what they thought an order was there for Bitcoin at very low prices. But unfortunately, the underlying Bitcoins were never in the possession of the exchange, so there’s never really anything there to be bought or sold, unfortunately.
Nichel O. Gaba also added that they identified and canceled all the orders. Hence, this resulted in the following chain of unfunded transactions. He also noted that they are working to restore all the accounts affected by this event.
Some users also reported the incident by sharing screenshots of the price of Bitcoin, which dropped Php 300,000 ($6,000) on PDAX. It was around the same time as the differences in user funds and holdings.
was once a trillionaire in PDAX. pic.twitter.com/gLj9wHksci
— Crypto Kristelle (@kaegoescrypto) February 25, 2021
The tech glitch has harmed the exchange itself. PDAX is trying to plug the leaks of this “glitch.” Aside from this, the exchange was closed for 36 hours. Many users are stating that they’re still locked out of their accounts.
However, one user managed to withdraw the bitcoin out of the exchange wallet. PDAX sent him an SMS and emails threatening legal action if he doesn’t return the BTC he bought. Furthermore, the user took it to Reddit, where he tried to get some advice.
Additionally, the company said that it will continue to improve every component of its platform.