Crypto giant Kraken has been offering refunds to traders hit with heavy losses as a result of a sharp dip in the price of Ether (ETH) on the exchange earlier this week.
The price of ETH on Kraken fell to $700 on February 22, significantly below its low point on other major exchanges. With investors licking their wounds, Kraken investigated the sell-off and found that its trading engine had “processed orders correctly”.
Chief executive Jesse Powell took to Twitter to explain that the price move was caused by extreme selling while also calling for customers not to trade with leverage if they don’t understand the risks.
But in an apparent volte-face, Kraken has been offering to refund customers throughout the week. A report from New Money Review, the news site, suggests that Kraken clients have been offered refunds ranging in size from 5% to 50% of their losses.
In a series of tweets on February 26, Kraken’s Powell said the business was “coming out of pocket to help some people out for the sake of client retention.”
“Larger cases are evaluated individually. Smaller cases received an automatic credit. Amounts are based on what they would have received had the price floor been what it was at another venue. Generally, 80-100% of that is credited, combo of cash + fee credits,” he continued.
Powell added that Kraken would do what it could to help its customers but would not “bend over backwards to meet unreasonable demands.”
Kraken did not respond to requests for comment by the time of publication.
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